Akzo Nobel in talks to buy US rival Axalta

AMSTERDAM: Dutch paints and coatings maker Akzo Nobel said it was in talks to buy US rival Axalta Coating Systems Ltd that could create a $30 billion company.
Akzo, the maker of Dulux paint, announced it was in “constructive talks” following market speculation about a possible deal.
It was reported the companies were in talks, sending Axalta’s shares 17 per cent higher.
Akzo has a market capitalisation of $22.7 billion, while Axalta is worth $8.1 billion at Friday’s closing price of $33.15.
Akzo said merging with Axalta, whose truck coatings business fills a hole in its portfolio, would “create a leading global paints and coatings company.”
Akzo earlier this year faced lawsuits from shareholders angry over its decision to reject a 26 billion euro takeover offer from US rival PPG Industries.
Analyst Joost van Beek of Theodoor Gilissen said the timing of the Axalta deal will be difficult, and Akzo’s management is under pressure to pull it off.
“There is a large risk that Akzo will pay too much, as it is clear that they want to stay out of the hands of PPG, and Axalta knows that,” he added. — Reuters