Axalta ends Nippon talks
Talks between Axalta and Nippon Paint Holdings have broken down, with Axalta rejecting what Reuters claims was a $9.1bn cash bid.
This follows just a week after merger talks between Axalta and AkzoNobel also broke down.
Axalta CEO Charles Shaver said, ‘While neither deal came to fruition, the keen interest by these companies underscores Axalta’s global leadership position. We are well positioned to continue as a standalone growth company and will remain disciplined in generating superior long-term value for our shareholders.’
Nippon Paint, Japan’s biggest paint supplier and 39% percent owned by Singapore-based investment company Wuthelam Holdings Ltd, has been looking to expand into America, however, Axalta said the company was ‘unwilling’ to meet Axalta’s expectations regarding the value of the company.
Whether this opens the door for further talks with AkzoNobel is uncertain. AkzoNobel CEO Thierry Vanlancker told shareholders, ‘We had a very strong click with Axalta, but we were only ever interested in a merger. We were never prepared to pay a premium for a takeover, partly because of the outlook for the automotive industry.’