AkzoNobel continues to advocate for a merger of equals with Axalta Coating (AXTA). Sherwin-Williams and Nippon Paint stated that due to AkzoNobel twice rejecting all-cash offers, they have decided to terminate the acquisition plan.
Rival companies Sherwin-Williams and Nippon Paint Holdings announced they are abandoning their joint bid for Dutch coatings giant AkzoNobel. This follows the rejection of their combined offer valued at 124.9 billion euros (approximately 145.3 billion US dollars). The news caused AkzoNobel's share price to plummet sharply.
In early European trading on Wednesday, AkzoNobel shares plunged 19% to 53.74 euros. The stock had risen significantly the previous week on acquisition speculation. Following this steep decline, its year-to-date loss has widened to approximately 9%. According to data from FactSet, this marks the stock's largest single-day percentage drop on record.
Nippon Paint and Sherwin-Williams stated that after AkzoNobel rejected two successive all-cash acquisition proposals, the two companies have decided to end the takeover process.
In response, AkzoNobel issued a statement: its management and supervisory board remain unanimously in favor of pursuing a merger of equals with US peer Axalta Coating (AXTA). This merger plan was announced last year, with the combined new coatings group estimated to have a total market value of around $170 billion.
AkzoNobel disclosed last week that the latest offer from Sherwin-Williams and Nippon Paint valued the company at 73 euros per share. The bidders indicated at the time that they would evaluate their next steps following the rejection.
AkzoNobel added that the acquisition proposal was originally initiated by Nippon Paint as a public tender offer. Upon completion of the transaction, the assets acquired would then have been split off and purchased by Cleveland-based Sherwin-Williams.
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