The managing director of Chemical and Allied Products (CAP), David Wright, has said the company’s merger with Portland Paints and Products Nigeria Plc will create better value for the shareholders.
The CAP Plc and Portland Paints, both subsidiaries of UAC of Nigeria recently secured the approval of shareholders to merge both businesses.
Wright at the companies Facts Behind the Merger on the Nigerian Stock Exchange (NSE) in Lagos, said that the business combination would expand products offering as well as revenue base.
According to him, the rational for the merger is to expand our product offering, having Santex by Portland in the CAP range will increase our reach in the decorative medium segment.
“Our brand will also expand, Santex is locally owned; so, we will have two local brands operating in different spaces of the decorative market; it will broaden our distributive capabilities. Once CAP and Portland come together, we will have 15 per cent of market share which will clearly place us as the market leader in the nation’s paint industry.
“The vision is to create a new Africa inspired by colours and being the market leader, will help us drive this forward as we plan to grow this business locally and internationally, organically or through acquisition.”
