The Foreign Investment Review Board has no objection to the proposed $3.8 billion purchase of DuluxGroup by Japanese paint giant Nippon.
DuluxGroup said on Friday the deal remains subject to other conditions – including approval by shareholders – with scheme information to be mailed out this month.
Nippon’s $9.80 per share bid has unanimous support of the DuluxGroup board.
If the takeover is accepted by shareholders, the deal is expected to be completed in August.
Last month DuluxGroup announced it will pay a special dividend despite a 14 per cent first-half profit slide, but the paint maker forecast a stronger finish to the year on improving home renovation markets.
Shares in DuluxGroup edged higher after it published the FIRB’s decision on Friday afternoon and were up 0.1 per cent at $9.73 by 1520 AEST.