Germany’s Merck has reached an agreement to sell its Surface Solutions business unit to China’s Global New Material International (GNMI) for €665 million ($720 million) in cash. Merck sells its pigments business to China’s GNMI for €665 million. This unit specializes in producing pigments for coatings, industrial applications, and cosmetics, generating sales of €411 million last year.
As part of the transaction, approximately 1,200 employees will transition to GNMI, with around 700 based in Germany. GNMI plans to establish three regional headquarters for the Surface Solutions division in Germany, the United States, and Asia, while retaining existing production facilities in Gernsheim, Germany, Onahama, Japan, and Savannah, Georgia, USA.
Merck will retain ownership of the Gernsheim property and will lease it to GNMI, ensuring a clear separation plan for the area occupied by Surface Solutions. The GreenTech Park Fluxum in Gernsheim will not be affected by the sale.
The transaction is anticipated to finalize in 2025, pending regulatory approvals and other customary closing conditions. Merck intends to utilize the net proceeds from this divestment to reinforce its core strategic businesses.
“The divestiture of the Surface Solutions business unit will sharpen our focus on high-tech applications in electronics, particularly in advancing next-generation chips for our semiconductor clients,” stated Belén Garijo, Chair of the Executive Board and CEO of Merck.
Ertian Su, Chairman and CEO of GNMI, expressed enthusiasm for the acquisition: “We are impressed by the commitment and expertise of the Surface Solutions team and look forward to welcoming our future colleagues. This combination will create attractive long-term career development opportunities, including job guarantees for employees in Germany and a site guarantee for Gernsheim until 2032. This demonstrates our commitment to valuing the business and its employees.”
