AkzoNobel Rejects €12.5 Billion Acquisition Bid from Nippon Paint and Sherwin-Williams
AkzoNobel turns down a €12.5 billion acquisition offer from Nippon Paint and Sherwin-Williams, favoring a merger with Axalta to form a global coatings leader.
- • AkzoNobel rejects Nippon Paint and Sherwin-Williams’ €12.5 billion acquisition bid citing undervaluation and regulatory concerns.
- • AkzoNobel and Axalta announce merger aiming to create a $25 billion coatings company with $17 billion in revenues.
- • The merger expects $600 million in annual cost savings, mainly in the first three years.
- • AkzoNobel’s stock rose 20% to €63 despite Nippon Paint’s higher €73 offer, indicating market confidence in the merger.
- • Nippon Paint and Sherwin-Williams are assessing their next moves after the rejection.
Key details
AkzoNobel, a Dutch coatings company, has rejected a €12.5 billion acquisition proposal from Nippon Paint and Sherwin-Williams, deeming the offer undervalued and uncertain in regulatory approval. Despite the higher bid of €73 per share—a 39% premium over the market price—AkzoNobel’s board remains committed to its ongoing merger with the American firm Axalta, aimed at creating a leading global coatings company valued at $25 billion with projected revenues of $17 billion. This merger, due for a shareholder vote in early July, is expected to yield annual cost savings of $600 million, primarily within the first three years.
Under Nippon Paint's offer, AkzoNobel would retain its decorative paints and industrial coatings businesses while selling its automotive, marine, and powder coatings segments to Sherwin-Williams. However, AkzoNobel contends that the bid undervalues the company and carries uncertainties regarding regulatory approvals. Following the announcement of the rejection, AkzoNobel’s stock price surged approximately 20% to €63.
Both Nippon Paint and Sherwin-Williams are now evaluating their next steps following the refusal. AkzoNobel continues to favor the strategic benefits of the Axalta merger as it seeks to strengthen its global market position in coatings.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
