Dulux share price: 3 things to watch out for ahead of half year results
Dulux share price soared after the Japanese Nippon Paint takeover bid, similarly, analysts expect the Dulux share price to move after it announces its half year results
1.Dulux agreement to Nippon Paints' takeover
Analysts say they will observe how the Dulux agreement to the Nippon takeover will affect its half year earnings, announced next week. It comes after Japan’s Nippon Paint proposed buying Australia’s largest paint maker for A $3.8 billion in April this year.
Nippon Paint Chief Executive Tetsushi Tado said the Australian company would be run as a separate division and he expected no change to its leadership, manufacturing or operations if the deal proceeded.
After the deal was recommended by the Dulux board, DuluxGroup share price soared 28% to the offer price. Dulux stock closed at A$9.74, just under the A$9.80 offer price, after the release.
2. Big business buyouts from Japan
The deal is said to catapult Nippon Paint, the world's fifth-largest paint maker, from a small-time player to the biggest paint seller in the region.
Analysts say the cash deal also offers investors in Dulux a chance to cash out at the end of a long construction boom.
According to Refinitiv data, buyouts from Japan in Australia hit $6.5 billion last year, their highest since 2015. The takeover comes as part of a string of Japanese acquisitions in Australia.
3. DuluxGroup share price
After the takeover bid, Dulux said its shareholders will receive $9.80 cash share price, inclusive of a $0.15 per share fully franked interim dividend.
DuluxGroup’s last September earnings showed the company saw an earnings growth of 5.4%
Analysts' outlook for its 2019 half year results are a mixed bag, however the most consistent analysis points to an increase of earnings growth by around 0.1 – 0.2%.
Analysts are baring in mind the Nippon takeover and looking to see how it has impacted earnings results for the Australian company, as well as its share price.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
