Nippon Paint offers $8.6 billion for AkzoNobel decorative paints unit
Nippon Paint is seen in this illustration photo November 22, 2017. REUTERS/Thomas White/Illustration
July 13 : Nippon Paint has offered to buy AkzoNobel's decorative paints business for €7.5 billion ($8.55 billion), the company said on Monday.
Nippon Paint had previously sought to buy AkzoNobel's entire business along with U.S.-based Sherwin-Williams for €12.5 billion, but the bid was rejected in May, after which the two withdrew their offer.
AkzoNobel did not respond to a request for comment outside regular business hours. No specific matters regarding the acquisition have been decided, Nippon Paint said.
The approach was first reported by Bloomberg News on Sunday.
Nippon Paint made multiple offers in the last month, but AkzoNobel did not inform shareholders, nor engage on the €7.5 billion proposal that was put forward last week, Bloomberg News reported, citing people familiar with the matter.
AkzoNobel, which makes the Dulux brand of paints, had said Nippon Paint and Sherwin-Williams' bid to take over the entire firm undervalued its business, lacked certainty on regulatory clearances and would split the company between two suitors.
Instead it is pushing ahead with an earlier plan to merge with U.S. coatings maker Axalta. The two firms are set to hold shareholder meetings to vote on the merger on August 5.
Paint makers are pursuing mergers to save money amid rising costs, intense competition, and uncertainty sparked by U.S. President Donald Trump's tariffs on imported goods.
($1 = 0.8775 euros)
