Article: Sluggish Market in Europe: Average Growth Rate Slows.

The european market for paints and coatings remains sluggish. The average growth rate over the next two years is expected to be 1.2%/year, improving slightly, to 1.6%/year, through 2005; sales volume will be 5.8 million m.t. in 2000 and 6.2 million m.t. in 2005, according to analysts.

In spite of the dull forecast, there is a huge amount of M&A activity in the sector, with 270 acquisitions involving European firms since 1990 (table). As a result of the consolidation and the decline in the number of paint producers, the importance of dominant players is increasing.

Recent activity involves some of the largest firms, such as Akzo Nobel's acquisition of ...

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