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 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]