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DuluxGroup Limited (ASX:DLX) has announced that its gearing up for growth in China through merging its China-based DGL International business with Hong Kong-based coating products producer Camelpaint.
The two merged companies will be called DGL Camel International Limited in which DuluxGroup will control 51 per cent.
DuluxGroup says it has a history of working together with Camelpaint and the merger will provide a platform for future growth in China.
The deal includes a payment to Camelpaint from Dulux to secure board and management control of the new company.
The merger is expected to be made binding before the end of this year.
In the half year ended on March 31, 2011 DuluxGroup more than doubled its net profit to $48.74 million.
