Dulux has been on the boards now for about a week and its share price has done very little in that time. The interesting situation now is what will Dulux look like in the short to medium term. As has been discussed Dulux's ability to grow itself either here or overseas is limited. In the wings though is the big bear Akzo Nobel (the world's biggest paint company).
Akzo Nobel own the Dulux brand throughout the world except in Australia, NZ, PNG and a couple of other small pacific spots. AkzoNobel is already entrenched in Australia, owning the International marine and protective coating brand of paints. Other household names include Sikkens and Interpon. AkzoNobel was the original owner and initiator of Onslow Salt, in Onslow.
AkzoNobel is a player in Australia, deco paint is a major part of Akzo's portfolio worldwide but a portfolio which is missing in Australia. "Dulux" is seen within Akzo as its brand and the market is now indicating what it believes is a fair price for the Aussie version of Dulux...I suspect the missing piece of the jigsaw puzzle will soon be in place for AkzoNobel.
I may prove to be wrong...but I'm having a bet on it!
DLX Price at posting:
$2.56 Sentiment: Buy Disclosure: Held
