SCG strengthens presence in sanitary ware market
Siam Cement Group is spending Bt2.6 billion to buy shares in two subsidiaries from TOTO Group of Japan.
TOTO Group of Japan's shares in Siam Sanitary Ware Co Ltd (SSW), and Siam Sanitary Fittings Co Ltd (SSF) will be sold to SCG. This will boost SCG's stakes in the two companies to 71.4 per cent (from 35.7 per cent) and 90.6 per cent (from 44.8 per cent), respectively.
In return, all of SCG’s 40 per cent stake in TOTO Manufacturing (Thailand) Co Ltd (TMT), a manufacturer of sanitary ware and fitting products, will be transferred to TOTO Group Bt368 million.
“This adjustment, the consolidation of SSW and SSF and the complete share sell down in TMT, is aimed to increase flexibility in managing SCG’s future business expansion, global brand marketing efforts, and other synergies for the sanitary ware and fitting assets which is in line with sustainable growth strategies towards Asean business leader of SCG. However, the two companies will continue to trade products on an OEM basis and will maintain favourable relationships with each other,” Kan said.
SSW and SSF are the leading manufacturers of sanitary ware and fitting products under the “COTTO” brand name. In 2012, these companies had combined sales of approximate Bt5.1 billion and net profit of Bt320 million.
