Cleveland, Ohio – There seems to be a lot of interest in merging the global coatings companies that supply the bulk of automotive paints to the industry, but actual deals just aren’t coming together.
Officials with Axalta Coatings on Thursday announced that they were rejecting Nippon Paint’s week-old bid to buy the company.
Nippon, Axalta officials say, was “unwilling to meet our expectations regarding the value of the company and assume the financial leverage necessary for a deal of this size.”
It’s been a busy year for paint companies with lots of deals proposed, but none coming to fruition. For a recap:
- March – Pittsburgh-based PPG bids $22 billion to buy Dutch paint company AkzoNobel. Akzo officials rejected that bid and a subsequent $26 billion offer. Negotiations finally began toward the end of the month when PPG offered $28.8 billion, but the deal failed because Akzo officials worried about the impact the merger could have on their employees and communities.
- Late October/Early November – AkzoNobel approaches Axalta, formerly known as DuPont Performance Coatings, suggesting a merger. The companies discuss a deal for several weeks, but terms were never announced. On Nov. 21, Nippon Paint made a reported $33 billion bid for Axalta, ending that company’s talks with AkzoNobel.
- Nov. 30 – Axalta officials announce the collapse of the third proposed automotive coatings merger of the year.
“Axalta is a premier company in the coatings industry and has recently been sought after by two global competitors,” says Charles W. Shaver, Axalta’s chairman and CEO. “While neither deal came to fruition, the keen interest by these companies underscores Axalta’s global leadership position.”
About the author: Robert Schoenberger is the editor of Today's Motor Vehicles and a contributor to Today's Medical Developments and Aerospace Manufacturing and Design. He has written about the automotive industry for more than 17 years at The Plain Dealer in Cleveland, Ohio; The Courier-Journal in Louisville, Kentucky; and The Clarion-Ledger in Jackson, Mississippi.