Global New Material International to Acquire Merck's Surface Solutions Business

Global New Material International Holdings Limited (“GNMI”, Hong Kong stock code: 06616) has entered into an agreement with Merck KGaA, (“Merck”) to acquire Merck’s global surface solutions business (“Surface Solutions”) for EUR 665 million in cash. The transaction is expected to close (“Closing”) in the course of 2025, subject to regulatory approvals and satisfaction of certain customary closing conditions.

GNMI and Surface Solutions are highly complementary from a product portfolio, expertise and geographic footprint perspective. The proposed combination will strengthen the position of the business post-closing and enable an even more customer-centric go-to-market approach. The acquisition is anticipated to further broaden the global capabilities of GNMI and enhance product excellence.

GNMI, spearheaded by its brand Chesir and CQV, has deep expertise in research and development, production, and sales of synthetic mica, pearlescent materials, and new energy materials. With main production capacities in China and Korea, GNMI holds a leading position in the mid-to-high market, supplying highly-functional cutting-edge materials to multinational customers worldwide in various sectors such as automobiles, cosmetics, electronic goods, personal cares, plastics, printings, foods, and pharmaceuticals. In particular, CQV is a pioneer in effect pigments in Korea and beyond, and will continue to play a critical role in expanding GNMI's global footprint along with the addition of Surface Solutions.

Merck Surface Solutions is specialized in solutions used in coating, cosmetic and industrial applications. Surface Solutions holds a strong position in the high-quality markets, especially in the global automotive and cosmetics markets.

Upon closing, the production facilities of Surface Solutions in Gernsheim (Germany), Onahama (Japan), and Savannah, Georgia (United States) will become regional hubs of the enlarged business with continued operations. Simultaneously, 1,200 global employees of Surface Solutions will be retained. There is also a comprehensive job guarantee program for the Gernsheim and Darmstadt sites as well as a site guarantee for Gernsheim in place until at least 2032.