Chemical industry - Merck sells pigment business for 665 million Euros
Darmstadt-based pharmaceutical and technology conglomerate Merck is selling its Pigments business for €665 million. The buyer is Chinese manufacturer Global New Material International Holdings (GNMI), Merck announced. The company will provide extensive job guarantees for employees in Germany and a guarantee for the Gernsheim site near Darmstadt until 2032, Merck emphasized. Around 1,200 employees, of whom approximately 700 are in Germany, are expected to transfer to GNMI as part of the transaction.
"With the sale of the Surface Solutions business unit, we are sharpening the focus of our Electronics business sector on high-tech applications such as the development of new chip generations, which we want to bring forward as an integrated solutions provider for our semiconductor industry customers," said Merck CEO Belén Garijo. Merck intends to use the net proceeds from the sale to strengthen its core businesses.
There have been rumors about the sale of the Surface Solutions business, in which Merck offers products for automotive coatings, cosmetics, and industrial applications, for years. The division generated sales of €411 million last year, measured against Merck's total sales of around €21 billion. During the Corona pandemic, the Pigments business suffered from weak cosmetics sales and a sluggish demand from the automotive industry.
The Chinese conglomerate GNMI with the brand Chesir is one of the largest manufacturers of pearlescent pigments. The closing of the deal is expected in the course of 2025.
- The Chemical industry in Darmstadt, Germany, is prominent with Merck KGAA, a pharmaceutical and technology conglomerate, playing a significant role.
- The Pharmaceutical industry giant Merck, located in Hesse, Germany, is undergoing a transformation by selling its Pigments business to Global New Material International Holdings (GNMI).
- Merck, a Technology conglomerate based in Darmstadt, is working towards strengthening its core businesses using the net proceeds from the sale of its Pigments business to GNMI, a prominent player in the Chemical industry.
- Global New Material International Holdings (GNMI), a Chemical industry giant from China, is set to expand its presence in Germany by acquiring Merck's Pigments business, situated near Darmstadt, thereby gaining a significant foothold in the Pharmaceutical industry.
