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Akzo Nobel confirms merger talks with Axalta

After fending off an unwanted takeover attempt by U.S.-based PPG Industries, Akzo Nobel N.V., the Dutch specialty chemical producer and leading global paints and coatings company, has confirmed that โ€œit is currently in constructive discussions regarding a merger of the AkzoNobel Paints & Coatings business with Axalta.โ€

AkzoNobel also confirmed that the separation of its specialty chemicals business, โ€œincluding the return of the vast majority of net proceeds to shareholders, remains on track for April 2018 and is unaffected by these discussions.โ€

A leading global coatings company, Philadelphia-based Axalta Coating Systems was formerly part of U.S. chemical company DuPont, which was rebranded after being acquired by private equity group Carlyle in 2013. It became a publicly listed company the following year.

The deal will create a leading global paints & coatings company through a merger of equals with combined annual revenues of around USD15 billion, following Akzoโ€™s planned disposal of its specialty chemicals business. Akzo Nobel is the second-largest player while Axalta is the fifth-largest player, specializing in industrial coatings.

In a statement, Axalta said that it will โ€œpursue such a transaction only if its Board of Directors determines that it is in the best interest of Axalta to do so. There can be no assurances that a definitive agreement between the parties will be reached or on what terms.โ€