Dutch coatings firm Akzo Nobel has confirmed today that it has ended discussions with Axalta.
On October 30, Akzo responded to speculation in the market and confirmed it was in “constructive discussions” regarding a potential merger of the Akzo Nobel Paints and Coatings business with US firm, Axalta.
Today, the Dulux parent group announced that the two companies had “ended their discussions without agreement”.
It has been reported by Reuters that the merger talks were called off when an all-cash offer was made by Japan’s Nippon Paint Holdings Co Ltd to acquire Axalta Coating Systems Ltd today. This has not been confirmed by either of the parties involved.
kzo explained that it continues to focus on its strategy of “accelerating sustainable growth and profitability through the creation of two focused, high-performing businesses and remains committed to its 2020 financial guidance (15% ROS and >25% ROI).”
The separation of the AkzoNobel Specialty Chemicals business and return of the vast majority of the net proceeds to shareholders is also said to “remain on track”.
The announcement follows the high-profile takeover attempt by US rival PPG Industries, during which Akzo rebuffed several offers, much to the dismay of certain shareholders.
Akzo Nobel CEO Thierry Vanlancker said of today’s announcement: "I am confident that our strategy offers significant value for shareholders and other stakeholders in the short, medium and long term. We remain focused on our strategic options to continue to develop our business and improve profitability in the future."