Nippon Paint Holdings Co Ltd has made an all-cash offer to acquire US coatings company Axalta Coating Systems Ltd, reports Reuters. Nippon Paint confirmed it has made ‘a proposal’ to Axalta but declined to give details, adding there is no assurance the two will reach any agreement.
The move comes as talks between AkzoNobel and Axalta came to an end over a potential merger without agreement. The two had been in ‘constructive discussions’ since the end of October over a ‘merger of equals’ but were unable to reach terms. Nippon Paint, is Japan’s biggest paint supplier and 39% owned by Singapore-based investment company Wuthelam Holdings Ltd.
Meanwhile, AkzoNobel continues to focus on its strategy of accelerating sustainable growth and profitability through the creation of two focused, high-performing businesses and remains committed to its 2020 financial guidance (15% ROS and >25% ROI).
The separation of the AkzoNobel Specialty Chemicals business and return of the vast majority of the net proceeds to shareholders remain on track. Thierry Vanlancker, CEO of AkzoNobel, said, ‘I am confident that our strategy offers significant value for shareholders and other stakeholders in the short, medium and long term. We remain focused on our strategic options to continue to develop our business and improve profitability in the future.’