Essential reading for retailers and suppliers in the home improvement market

BREAKING NEWS: Akzo Nobel in merger talks with Axalta

Published: 30 October 2017
 

Dutch coatings firm, Akzo has today confirmed it is in “constructive discussions” with US rival Axalta with a view to creating a “leading global paints & coatings company through a merger of equals”.

Akzo made its statement this morning in “in response to market speculation”, it said, as it also confirmed that the separation of its Speciality Chemicals division still remains on track for April 2018.

Commenting on the news, Axalta explained that it, “will pursue such a transaction only if its board of directors determines that it is in the best interest of Axalta to do so.”

Talks are still in the early stages and Axalta added that, “there can be no assurances that a definitive agreement between the parties will be reached or on what terms.”

The announcement follows an unsuccessful takeover attempt by PPG Industries earlier this year, when Akzo declined a €26.9billion offer from the American company.  The firm, which owns the Dulux, Polycell, Hammerite and Cuprinol brands, came under pressure from its board for rejecting the lucrative offer and tensions were high, resulting in legal proceedings. The board has since agreed a three-month standstill on any litigation with one of its shareholders, Elliott Advisors.

Pressure may again be mouting for Akzo, which has since issued two profit warnings but asserts it is still on track to deliver the shareholder benefits promised for the separation of its Speciality Chemicals division. 

The move with Axalta could be an attempt to ward off another potential run on the company from PPG, which woudl be able to renew its takeover bid from December 1 under Dutch takeover rules.

Source: 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


Do you know enough about the General Data Protection Regulation (GDPR) and what your business needs to do to comply?



Latest reader comments

re: Bunnings Warehouse opens biggest store yet in Greater Manchester

Vicky Huck
Visited the new Sandbrook store yesterday,never before have i come across such friendly and helpful staff,one lady came rushing around the ...

re: Hardware store wins fight against music licence body

Ron Edwards
You might be interested to know that music released before 31 December 1962 is now public domain and does not require a PPL licence. You ...

re: Toolstation.com excels in Which? website survey

Mr Ron Diggle
Unfortunatly I cannot remember the young ladies name who served me, but she was very polite and efficient with a lovely smile, it was a ...

re: Recalls for fire- and shock-risk heater and adaptors

Gary
Thjis was still on sale in Home Bargains in January in 2018....

re: B&Q flowering plants to be grown free of bee-killing pesticides

Paula Olde-Wolbers
Dear Miss Bradley,You state that none of the flowering plants you sell will be grown using any pesticide containing any of the nine ...

Most read stories

Jobs Board

Area Sales Manager - South

South

Generous OTE + Car + Bonus + Benefits

DK Tools Ltd is looking to appoint an Area Sales Manager to join their progressive team in the fi...

Apply