Nippon Paint Holdings, the world's fourth largest paint company, has signed a $ 16.7 billion contract with Goh Cheng Liangs Wuthelam Holdings to build the largest paint and coatings company in Asia.
Wuthelam will buy majority stakes in Nippon Paint, which will use the capital to buy out its joint ventures in the Asia Pacific region. Nippon Paint will also acquire Wuthelam's Indonesian business for S $ 2.7 billion.
Goh, who draws his fortune from a majority stake in Nippon Paint holdings, will increase his stake in the Japanese company from 39 percent to 58.7 percent. This is reportedly one of the largest deals in Asia for 2020.
The billionaire built his fortune during the early years of Singapore's independence when he became the main distributor for Nippon Paint in 1962.
Goh is worth $ 18.7 billion
Currently, Goh is the third richest man in Singapore with a total net worth of $ 18.7 billion.
He is the founder of Nippon Paint Southeast Asia (NIPSEA), which has a market value of $ 11.8 billion and operates in 16 countries and regions.
The company is a joint venture between Wuthelam, the Goh family investment company, and Nippon Paint.
To date, the Goh family's total net worth has reportedly increased from $ 9.5 billion in 2019 to $ 14.8 billion in 2020.
The growth could be due to Nippon Paint's massive expansion in 2019, when DuluxGroup, Australia's largest paint maker, was acquired for $ 2.7 billion and Turkey's Betek Boya for $ 247 million.
Nippon Paint Holdings has been "buying large acquisitions" since 2019 to expand outside of Japan as the largest coatings manufacturers battle to consolidate their businesses to take over the market.
Selected image source: Billionaire Monitor / Reuters