The acquisition of flat glass manufacturer Nippon Sheet Glass (NSG) by Apollo Global Management funds has received European Commission approval.
The regulator reviewed the transaction and said it does not expect the acquisition to raise competition concerns since the companies are not active in vertically related markets.
Glass International reported last month of the $3.7 billion (JPY 590 billion) acquisition.
The company’s new control will primarily revolve around the manufacturing and supply of glass products.
NSG, which makes architectural, automotive and solar glass, has been struggling with debt since it acquired Pilkington two decades ago.
The company previously said it would use the proceeds to pay down JPY 189bn of debt held by Pilkington, which became a subsidiary when it was bought for £2.2bn in 2006.
Under the terms of the agreement, Apollo will invest JPY140bn of funds from major Japanese banks into NSG to repay debt they are owed.
In conjunction with this investment, NSG’s principal lenders will transition a portion of their outstanding loans to equity. It said this would reinforce their commitment and provide for a more stable balance sheet structure for the company.
Apollo said the NSG Group’s diversified manufacturing platform, industry heritage and deep customer relationships would position the company to capture demand for energy-efficient architectural glass, automotive glazing and solar products.
