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 “it is currently in constructive discussions regarding a merger of the AkzoNobel Paints & Coatings business with Axalta.”
AkzoNobel also confirmed that the separation of its specialty chemicals business, “including the return of the vast majority of net proceeds to shareholders, remains on track for April 2018 and is unaffected by these discussions.”
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 Akzo’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 “pursue 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.”