Core Viewpoint - The acquisition of Merck's Surface Solutions business (SUSONITY) for €665 million is framed as a resonance of long-term values between two companies, emphasizing a commitment to employee welfare and sustainable business practices [1][2]. Group 1: Strategic Vision and Market Position - The acquisition is seen as a step towards becoming a global leader in high-performance materials, combining Eastern innovation with Western industrial rigor [1][8]. - After 14 years of development, the company has become the largest producer of pearlescent pigments in China, driven by demand in high-end markets such as automotive and cosmetics [2][7]. - The company is expanding its production capacity, with a new plant for 30,000 tons of pearlescent materials set to start operations in 2024, and a 100,000-ton surface performance materials project nearing completion [2][6]. Group 2: Long-term Commitment and Employee Focus - The negotiation process highlighted the company's long-term commitment, which reassured Merck about the future of its employees and the business [2][3]. - The company aims to ensure that all employees feel valued and secure, fostering a culture of trust and collaboration across its global workforce [3][6]. Group 3: Integration Philosophy - The integration strategy emphasizes flexibility and customer orientation, avoiding a one-size-fits-all approach and allowing business units to maintain some independence while focusing on core objectives [4][6]. - The company plans to leverage its market insights and Merck's global customer network to enhance service efficiency while creating a responsive global strategy for production and supply [4][5]. Group 4: Financial Performance and Synergies - The previous acquisition of CQV has shown positive results, with a revenue increase of 17.8% and a net profit surge of 171.3% in 2024, indicating successful integration and synergy [5]. - The collaboration has led to CQV's products entering the supply chains of major automotive manufacturers in China, enhancing the company's market presence [5][6]. Group 5: Future Aspirations - The company aims to lead the global market for synthetic and natural pearlescent pigments, addressing the supply chain challenges associated with natural mica, which is a limited resource [7][8]. - The vision includes positioning the company as a hub for innovation that connects global industrial advantages and shapes the future of the industry [8].

Group 1 - The core point of the article is the completion of the acquisition of Merck Group's surface solutions business (SUSONITY) by Global New Materials International for over 5.5 billion RMB, marking the largest overseas merger in China's pearlescent materials industry [2][3] - The acquisition is expected to enhance Global New Materials' international brand presence, advanced technology, and global distribution channels, while also allowing the company to replace natural mica with self-produced synthetic mica, addressing raw material depletion risks and rising energy costs [2][4] - The acquisition includes seven subsidiaries of Merck located in Germany, Japan, and the United States, covering 18 countries and primarily targeting the coatings, cosmetics, and industrial surface solutions markets [4] Group 2 - Global New Materials International aims to create a "global surface materials ecosystem platform," leveraging SUSONITY's established cross-border e-commerce channels and localized service systems to accelerate international market expansion and sales growth [5] - The company plans to achieve synergies in raw material collaboration, capacity optimization, process integration, and cost control post-acquisition, enhancing supply chain resilience and overall operational efficiency [5] - The financial performance of Global New Materials International shows a projected total revenue of 1.662 billion RMB for 2024, representing a year-on-year growth of 51.15%, with a net profit of 242 million RMB, up 33.37% [2]

Core Insights - The acquisition of Merck's Surface Solutions business by Global New Materials International marks a significant strategic breakthrough for Chinese new materials companies in the global high-end market [1] - The transaction, valued at €665 million (approximately ¥5.584 billion), represents 3.4 times the acquirer's projected revenue for 2024, making it the largest cross-border deal in China's pearlescent materials industry [1][2] - The establishment of the Asia-Pacific headquarters in Tonglu is a critical step in integrating the acquired business and enhancing the local manufacturing landscape [1][3] Company Overview - Global New Materials International specializes in the research, production, and sales of pearlescent materials and synthetic mica, having overcome key technological barriers to break the Western monopoly on high-end mica materials [2] - The acquired Merck Group, with over 350 years of history, is a renowned multinational corporation with a significant presence in the high-quality pearlescent pigment market, particularly in the automotive and cosmetics sectors [2] Strategic Implications - Post-acquisition, Global New Materials International will gain access to international brands, technologies, and global distribution channels, while also mitigating raw material supply risks by replacing natural mica with self-produced synthetic mica [2] - The integration of research and development systems will facilitate the joint development of new applications in electric vehicle coatings and sustainable beauty materials, as well as the commercialization of innovative technologies [2] - The acquisition is expected to enhance Tonglu's position as a hub for international surface performance materials and active materials, creating a dual-cycle system of "overseas high-end applications + Tonglu core materials" [2][3] Regional Development - Tonglu's strategic location in the Yangtze River Delta provides advantages in market access, natural resources, and transportation, which are crucial for the project's success [3] - The local government has actively supported the project by integrating resources and expediting infrastructure development, demonstrating a commitment to optimizing the industrial structure and advancing the manufacturing sector [3] - Future plans include reserving land for downstream enterprises in automotive coatings and beauty raw materials, further extending the industrial chain and enhancing value-added services [3]

Core Viewpoint - The establishment of the Asia-Pacific headquarters in Hangzhou marks a strategic milestone for the company, aiming to link global innovation and serve global customers in the new materials industry [1][2]. Group 1: Asia-Pacific Headquarters - The Asia-Pacific headquarters will leverage the innovation hub of Hangzhou and the advantages of the Yangtze River Delta industrial cluster to integrate resources from China, Germany, South Korea, the United States, and Japan [2]. - The headquarters aims to create a global high-end market-oriented R&D innovation and business collaboration platform, supporting the company's goal of becoming a "global new materials technology platform enterprise" [2]. Group 2: Recent Acquisition - The company recently completed the acquisition of Merck's surface solutions business, SUSONITY, with a total investment of €665 million, marking the largest overseas acquisition in China's pearlescent materials industry [2]. - This acquisition is seen as a milestone in the company's globalization strategy and a key turning point for the Chinese materials industry from "technology following" to "value co-creation" [2]. Group 3: Global Integration and Collaboration - The launch ceremony facilitated the first gathering of management teams from SUSONITY, CQV, and Qisec Pearl, promoting global integration and collaboration [2]. - The company emphasizes that the blending of diverse cultures and management philosophies will enhance synergy and accelerate its expansion and innovation in global high-end markets [2]. Group 4: Future Plans - The company plans to use the Asia-Pacific headquarters as a new starting point to increase R&D investment and promote the innovative application of functional materials [3]. - The company aims to actively participate in industry standard formulation and support green transformation and high-quality development [3]. - The company will continue to deepen strategic collaboration with global customers and partners to create a new chapter in leading and integrating the Chinese new materials industry [3].

Core Insights - The acquisition of SUSONITY by Global New Materials International for €665 million marks the largest cross-border merger in China's pearlescent materials industry, signifying a breakthrough in the company's global high-end materials market strategy [1] - The merger aims to achieve deep synergy in technology, market, and product integration, propelling the surface performance materials industry into a higher quality development phase [1][2] - SUSONITY holds a leading position in the surface performance materials sector, particularly in pearlescent pigments and cosmetic active substances, with a mature global R&D-production-sales system [1][2] Company Strategy - Global New Materials International, as a leader in synthetic mica-based pearlescent materials, has a comprehensive industry chain capability, addressing the depletion of natural mica resources while excelling in cost control and environmental performance [2] - The integration of both companies will create a complete product system covering all fields, enhancing product value and customer reach in core sectors like automotive and cosmetics [2][3] Global Expansion - The merger will accelerate the company's globalization process, shifting its market focus from primarily China and South Korea to include deep penetration into the high-end markets of Europe and America [3] - Leveraging SUSONITY's established cross-border e-commerce channels and local service networks will significantly enhance the efficiency of reaching international customers, potentially leading to exponential growth in global market share and brand influence [3] Integration and Future Plans - The integration process has commenced, with a focus on retaining SUSONITY's core team and business structure to ensure a smooth transition [3] - An integration committee comprising executives from both companies will be established to create a detailed integration plan, fostering deep collaboration in technology development, manufacturing, and market channels [3] - The company's Asia-Pacific headquarters in Tonglu, Hangzhou, and a synthetic mica production base with an annual capacity of 100,000 tons are progressing, expected to be operational by the end of 2025, providing robust support for the integrated supply chain [3] Industry Impact - The completion of this acquisition is a significant milestone in the company's globalization strategy and is set to reshape the competitive landscape of global surface performance materials [4] - Through resource optimization and complementary advantages, the merger aims to offer innovative and high-performance material solutions to global customers, leading the industry to new heights [4]

Core Viewpoint - The completion of a cross-border acquisition by Global New Materials International for €665 million marks a significant milestone in the pearl pigment industry, positioning the company among the global leaders and enhancing its international market presence [1][2]. Acquisition Details - The acquisition, finalized in July, involves the transfer of Surface Solutions business assets from Merck, including subsidiaries and production bases in Germany, Japan, and the United States, primarily serving the automotive, cosmetics, and industrial sectors [2][4]. - The transaction price of €665 million is approximately 3.4 times Global New Materials International's projected revenue of 1.649 billion yuan for 2024 [2]. - The acquired assets generated a revenue of €402 million in 2024, indicating a potential tripling of Global New Materials International's revenue post-acquisition [2][11]. Strategic Implications - The acquisition is likened to Geely's purchase of Volvo, showcasing a strategic move to capitalize on favorable market conditions and enhance competitive positioning in high-end markets [3][4]. - Global New Materials International aims to maintain the original management team and brand identity of the acquired business, fostering a collaborative environment to leverage existing strengths [4][8]. - The company anticipates achieving synergies that will strengthen its supply chain, reduce production costs, and enhance its global market reach [4][12]. Market Context - The global pearl materials market was valued at 23.5 billion yuan in 2023, with a compound annual growth rate (CAGR) of 14.1% from 2016 to 2023, projected to reach 44 billion yuan by 2030 [9]. - The automotive coatings market is expected to grow from $23.72 billion in 2023 to $57.27 billion by 2032, with a CAGR of 10.4% [11]. - The acquisition positions Global New Materials International to capitalize on the growing demand in the automotive coatings sector, particularly with the rise of electric vehicles [11][12]. Company Evolution - Founded in 2011, Global New Materials International has rapidly ascended from a local manufacturer to a significant player in the international market, completing multiple strategic acquisitions to enhance its capabilities [7][8]. - The company has established a comprehensive production capacity for synthetic mica and is expanding its operations to meet the growing demand for high-end materials [11].

Core Viewpoint - The acquisition of SUSONITY by Global New Materials International Holdings Limited marks the largest cross-border merger in the pearl material industry in China, valued at €665 million (approximately ¥5.187 billion or HK$5.586 billion) [1] Group 1: Acquisition Details - The acquisition was completed on July 31, with the delivery ceremony held in Frankfurt, Germany, and SUSONITY will operate as a subsidiary under an independent brand [1] - This strategic acquisition is a significant step in the company's globalization strategy, positioning it at the center of the global surface performance materials competition [1][4] Group 2: Market Position and Synergies - Global New Materials International is a leading player in the global synthetic mica-based pearl material market, while SUSONITY has established expertise in surface solutions for coatings, cosmetics, and industrial applications [2][3] - The integration of SUSONITY is expected to enhance the company's market position and customer-centric strategies, particularly in high-end markets such as automotive coatings and cosmetics [3][4] Group 3: Global Expansion and Operational Efficiency - The acquisition will expand the company's geographic coverage and sales channels, particularly in the automotive and cosmetics sectors, enhancing its competitive edge [4] - New production facilities in Germany, Japan, and the United States will contribute to the company's operational efficiency and supply chain strengthening [4] - The company aims to leverage SUSONITY's established sales network and customer resources in Europe, America, and Asia to drive sales growth [4] Group 4: Future Outlook and Strategic Goals - The company plans to enrich its product matrix and deepen key technology areas while expanding its global high-end customer market [5] - Recent acquisitions, such as the 42.45% stake in South Korea's CQV, have shown positive financial results, indicating a successful strategy for growth and collaboration [5]

Core Viewpoint - The completion of the acquisition of Merck's Surface Solutions business marks a significant milestone for Global New Materials International, establishing its presence in the global surface performance materials sector and enhancing the globalization strategy of Chinese new materials companies [1][2]. Group 1: Acquisition Details - The acquisition was finalized on July 31, 2025, with a transaction value of €665 million, encompassing subsidiaries and production bases in Germany, Japan, and the United States [1]. - The acquired business will be rebranded as SUSONITY and will continue to operate independently, serving a global customer base [1]. - This acquisition is the largest cross-border merger in China's pearlescent materials industry to date [1]. Group 2: Strategic Importance - The acquisition is seen as a strategic necessity amid the restructuring of the global pearlescent materials market, with a shift towards high purity, weather resistance, and green safety [2]. - The integration of Merck's Surface Solutions business allows Global New Materials International to gain access to a comprehensive patent portfolio, stable high-end customer resources, and a mature R&D and application collaboration platform [1][2]. Group 3: Financial and Operational Support - Financial data indicates that Global New Materials International's revenue is projected to grow by 55% year-on-year in 2024, with a gross margin maintained above 50% [2]. - The previous acquisition of Korean CQV has resulted in a doubling of profits, providing a reference for business synergy post-integration [2]. Group 4: Future Outlook - The company aims to merge global sales networks, optimize cost structures, and enhance brand matrices, facilitating a transition from "Asian manufacturing" to "global operations" [2]. - The acquisition reflects the rising status of Chinese new materials companies within the global supply chain, with expectations of stronger global competitiveness in surface materials through deepened technological collaboration and capacity integration [2][3].

Core Insights - The acquisition of Merck's Surface Solutions business by Global New Materials International for €665 million marks a significant consolidation in the global pearlescent materials market [1][2] - The integration aims to enhance Global New Materials' product matrix and strengthen its technological capabilities while expanding its global high-end customer base [1][2] Company Overview - Global New Materials International now holds 100% ownership of Merck's Surface Solutions, which has been rebranded as SUSONITY [1] - SUSONITY is the market leader in natural mica-based pearlescent pigments, while Global New Materials is the leader in synthetic mica-based pigments [2] Market Strategy - Post-acquisition, Global New Materials will integrate SUSONITY's international sales channels to expand its global market presence, particularly in automotive coatings and cosmetics [2] - The acquisition is expected to enhance brand premium and pricing power due to SUSONITY's leadership in global pearlescent pigments [2] Operational Integration - SUSONITY will continue to operate as an independent brand, maintaining its core team and existing business structures in Germany, the U.S., and Japan [2] - The production facilities in Germany, Japan, and Georgia, USA, will remain operational and serve as regional hubs, retaining all 1,200 employees [2] Industry Context - The pearlescent materials market is undergoing a restructuring phase, with increasing demand for high-purity, weather-resistant, and environmentally safe applications [3] - The domestic breakthroughs in core raw materials like synthetic mica enable Chinese companies to challenge traditional international giants in the high-end materials sector [3]