Ahead of filing formal registration documents for its proposed merger with US firm Axalta, dutch coatings giant AkzoNobel has disclosed that it received – and promptly rejected – two joint counter-offers from Sherwin-Williams and Nippon Paint. The higher of these, rejected on 1 May, offered €73 in cash per AkzoNobel share, totalling around €13 billion (£11 billion).
Under Nippon and Sherwin-Williams’ proposal, AkzoNobel would be broken up and its various divisions split between the two companies. Nippon would retain AkzoNobel’s decorative paints and industrial coatings, while its automotive & speciality, marine & protective and powder coatings businesses would go to Sherwin-Williams. AkzoNobel’s boards concluded that the offered price significantly undervalued the company, and that there was uncertainty over whether such a proposal would be approved by competition regulators. The company renewed its commitment to its existing merger plan with Axalta.
The paints and coatings sector is undergoing a period of consolidation, with major manufacturers seeking to scale up through acquisitions. The AkzoNobel–Axalta merger will create a significant competitor to the likes of Sherwin-Williams, Nippon and PPG Industries.
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