This was due to excessive marketing costs incurred to confront the competition. Large sums of money were spent without achieving either stability or expansion, and it became apparent that there was a risk of large foreign paint manufacturers controlling parts of the Norwegian paint industry.
Norway had, and still has, one of the highest levels of paint consumption per capita in the world, and the price and quality level of the products is high. Even as a small market, Norway may be a temptation to large international manufacturers.The four major manufacturers in the Norwegian market were aware of the danger, and in August 1971 an agreement was reached.
Odd Gleditsch jr., then Managing Director of A/S Jotun, insisted that the four largest Norwegian manufacturers should merge. A/S Jotungruppen was established on 2nd January 1972. The four companies were: Alf Bjercke A/S, Fleichers Kjemiske Fabrikker A/S, A/S De-No-Fa og Lilleborg Fabrikker, and A/S Jotun Odd Gleditsch.