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S. Africa Orders Divestment In $260M Coatings Merger

Law360 (April 19, 2011, 7:41 PM EDT) -- South Africa's antitrust watchdog on Monday approved Kansai Paint Co. Ltd.'s 1.8 billion rand ($260 million) hostile bid for rival Freeworld Coating Ltd. — as long as the Japanese company agrees to shed Freeworld's automotive coatings unit.

Without the divestiture, the deal would have increased the concentration of the country's already highly concentrated automotive coatings market, South Africa's Competition Commission said Tuesday in announcing the decision.

Kansai announced its plans to make an offer for the South African coatings company in December. After making little progress...
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