PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Sherwin-Williams


Coatings Industry News

Main News Page


Axalta-Nippon Discussions End

Monday, December 4, 2017

Comment | More

Less than two weeks after a potential deal between Axalta Coating Systems (Philadelphia) and Nippon Paint Holdings Co. Ltd. (Osaka, Japan) was first broached, talks have ended with no agreement.

Axalta made the announcement Thursday (Nov. 30).

Nippon Paint headquarters
tokumeigakarinoaoshima, CC0, via Wikimedia Commons

Nippon Paint (Osaka, Japan headquarters pictured) will not purchase Axalta Coating Systems.

For Nippon, the attempt to acquire Axalta was part of a move to expand into sales for automotive manufacturers, as well as increase its U.S. footprint.

Nippon Talks

In its talks with Axalta, Nippon made an all-cash bid that totaled $9.1 billion. The failed talks came on the heels of AkzoNobel’s recent bid to acquire the company, which also fell through.

“While neither deal came to fruition, the keen interest by these companies underscores Axalta’s global leadership position,” Axalta CEO Charles Shaver said in a statement. “We are well positioned to continue as a standalone growth company and will remain disciplined in generating superior long-term value for our shareholders.”

According to Axalta, Nippon Paint’s Board of Directors was unwilling to meet Axalta’s expectations in regard to company value.

Axalta

On Thursday, global coatings manufacturer Axalta Coating Systems ended talks with Japan-based Nippon Paint Holdings Co. Ltd., resulting in the failure of the potential sale.

“I would like to thank our customers, investors, suppliers and employees for their patience and support as we have considered these strategic options. We look forward to continuing the performance you have come to expect of our company,” Shaver concluded.

Prior Discussions

Earlier last month (Nov. 22), Axalta released a statement announcing that the company had engaged in talks with Nippon.

“Axalta today confirmed that it is engaged in discussions with Nippon Paint regarding a potential acquisition of Axalta,” the statement read. “Axalta 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.”

Nippon did not release its own statement, but Reuters reported that “two people familiar with the matter” confirmed that the company made the all-cash offer to acquire Axalta.

On the previous day, Nov. 21, both AkzoNobel and Axalta released statements indicating that their merger talks—which were announced at the end of October—had ended, with just minimal statements from each company.

That potential merger would have involved Axalta merging with AkzoNobel’s Paints and Coatings business; the financial terms of the offer were not disclosed..

“After pursuing a potential combination of Axalta and Akzo, we concluded we could not negotiate a transaction on terms that meet our criteria,” said Shaver. “Any transaction we ultimately agree to needs to generate superior long-term value for Axalta shareholders as compared to the continued execution of our strategic plan.”

   

Tagged categories: Acquisitions; AkzoNobel; Axalta; Finance; Mergers; Nippon Paint

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Carboline Company
 
Carboline launches new website!
 
The completely revamped website, offers quick and easy access to essential product information and is now mobile-friendly.
 

 
BASF
 
New resins from BASF will have metals loving water!
 
Excellent corrosion resistance, low VOC, high gloss, thin films www.basf.us/industrialcoatings dpsolutions@basf.com 800-231-7868
 

 
SABRE Autonomous Solutions
 
Quality
 
The ALPHA1 provides a consistent finish day-in
day-out; job to job.
 

 
Industrial Vacuum Equipment Corp.
 
Hurricane Vacuums
& Dust Collectors
 
Vacuum and dust collector hose, filters and related accessories.
IndustrialVacuum.com
 

 
HoldTight Solutions Inc.
 
Full Surface Protection for Up to One Year
 
HT 365 is a preservation, single component, anti-corrosive coating, a water displacing agent, a lubricant, and a penetrating fluid. It creates an imperceptible thin-film coating that offers excellent salt contaminant and humidity protection. Contact your HoldTight® representative or visit Holdtight.com for more information.
 

 
Tarps manufacturing, Inc.
 
QUALITY MADE IN AMERICA —Available near you!
 
CLICK to get a behind-the-scenes look at how Tarps Manufacturing makes the highest-quality tarps right here in the USA — available nationwide.
 

 
Jotun Paints Inc.
 
Jotun Jotachar 1709
 
Mesh-free passive fire protection epoxy designed to protect against hydrocarbon pool fire scenarios for up to four hours as defined in the ANSI/UL1709 standard.
 

 
Mitsubishi Gas Chemical America
 
Performance Amine 1,3-BAC
 
A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.
 

 
KTA-Tator, Inc. - Corporate Office
 
Instrument Service Department
 
Are you a QP certified contractor? KTA’s Instrument Service Department can help keep you compliant!
Click or call 1-800-KTA-GAGE.
 

 
Bullard
 
Bullard Made in the USA
 
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy (Updated 5/24/2018)   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us