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(Your email address will not be published)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?


As the Brexit saga continues, what do you want the Government to do?



Latest reader comments

re: Rosebourne completes purchase of Wyevale centre

Patricia Mills
Do you still have a cafe or restaurant, as I was going to brjng some elderly ladies for lunch and a browse around shops and garden centre. ...

re: Women line up for B&Q DIY classes

Tara Boolakee
HelloJust wanted to ask whether you still provide DIY classes anywhere near around Brentford TW8 .Thanks TaraQSCA...

re: New B&Q trade discount card offers up to 25% discount

geej@onetel.com
Don't bother responding to an 11 year old post; get off your b*m and visit local store....

re: IKEA rival to open 15 stores in Ireland

geej@onetel.com
Seems to be vast over provision of stores for size of market!...

re: JML appoints new board member

Gel
Stupid to respond to 7 year old story, expecting response! Never heard of Google?Staff will likely have moved on....