Nippon Paint, Sherwin-Williams end takeover pursuit, AkzoNobel shares tumble
Termination of Acquisition Efforts and Market Impact
By Dimitri Rhodes
Joint Acquisition Plans Abandoned
TOKYO/GDANSK, June 3 (Reuters) - Nippon Paint and Sherwin-Williams said on Wednesday they had decided to terminate their efforts to jointly acquire rival paint maker AkzoNobel.
Share Price Reaction
Shares of the Dulux paint maker fell more than 20% in early trade after being halted initially, and were set for their worst-ever trading day if the losses hold.
Analyst Perspectives
"A lot of people may have thought that another offer from Sherwin-Williams and Nippon Paint would be forthcoming," Berenberg analyst Sebastian Bray said.
Background to the Decision
The companies' decision followed AkzoNobel's rejection of their €12.5 billion ($14.5 billion) cash takeover offer last week, which had sent the Dutch company's shares 20% higher.
AkzoNobel’s Future Plans
AkzoNobel said in a press release on Wednesday that both its boards unanimously continued to recommend its planned merger with U.S. coatings maker Axalta.
Market Outlook
"Ultimately the Axalta merger now appears the most likely outcome," Bray said.
Exchange Rate and Reporting Credits
($1 = €0.8610)
(Reporting by Kantaro Komiya in Tokyo and Dimitri Rhodes in Gdansk; Editing by Jacqueline Wong)
