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Europe. TotalFina signs letter of intent to sell inks division
TotalFina signs letter of intent to sell inks division
TotalFina has signed a letter of intent to sell its Inks division (Coates) to Sun Chemical Group, a wholly owned subsidiary of Japan's Dainippon Ink and Chemicals. Coates Inks Division reported 1998 sales of roughly FF 5 billion.
The sale will enhance Coates' development by integrating its operations with a large organization, which is the worldwide industry leader. In a market shaped by rapid globalization, TotalFina's Inks division, despite its high quality assets, did not have strong enough positions in the two leading western markets, North America and Germany.
Both parties intend to finalise the transaction by the end of the year, following due diligence by Sun Chemical, consultation with employee representatives and approval by the necessary authorities.
The transaction is in line with TotalFina's clearly announced strategy of refocusing and developing its chemicals business in its most promising segments.