ACCC opposes acquisition of Wattyl.

The Australian Competition and Consumer Commission (ACCC) has opposed the proposed acquisition of Wattyl by South Africa's Barloworld, ACCC chairman, Graeme Samuel, said. "The ACCC has formed the view, after a comprehensive investigation and inquiries among industry participants, that the proposed acquisition is likely to substantially lessen competition for the manufacture and supply of architectural and decorative paints in Australia," Samuel pointed out. "Wattyl and Barloworld are the second and third largest suppliers of architectural and decorative paints in Australia, and the merged firm would account for more than half of total sales. The merged firm and Orica, which is currently the largest supplier, would together account for approximately 90% of architectural and decorative paint sales."

Commenting on the announcement in a statement made to the press, Barloworld CEO Tony Phillips said the ACCC's position was "disappointing."

"We believe that our proposal would have been good for the Australian public and the industry. It would have revitalized consumer choice by creating a vigorous competitor to the current market leader and also stimulated market growth. We believe that the divestment proposals we presented to the ACCC would have addressed their competition concerns.

"However, they now want us to go further and divest even more assets. This would have destroyed the business logic of the deal. Accordingly, given that ACCC approval was a condition and taking into account the commercial considerations, we will be letting our offer lapse on July 20."

FORD RECOGNIZES BASF

BASF has been named by Ford Motor Company as one of its preferred global suppliers, joining a select list of 36 suppliers in Ford's "Aligned Business Framework."

The Aligned Business Framework is a crucial element in Ford's global program to reduce the number of suppliers the company uses, and to build more collaborative relationships with those suppliers, the company said. Globally, Ford has more than 2,000 production suppliers and spends approximately $70 billion dollars annually on production parts.

"We are pleased and honored to be selected by Ford as one of its preferred suppliers," said Jeffrey A. Leone, BASF's global account director for Ford. "BASF has a long and proud relationship with Ford. This designation recognizes the consistent quality of our products and services as well as our commitment to helping Ford be more successful."

SPECIALTY COATING SYSTEMS OPENS COSTA RICA FACILITY

Expanding its parylene coating capabilities, Specialty Coating Systems (SCS) has opened its newest parylene coating facility in Heredia, Costa Rica. The 8,000-square foot facility, located in the Global Park Free Zone, is the company's first in Costa Rica and the tenth location worldwide.

"We are pleased to be able to expand to meet the needs of our current customers and position the company for future growth," said Terry Bush, COO of SCS. "SCS' location in Costa Rica enables us to better serve our worldwide markets."