Ak­zoNo­bel in $30B merger talks with ri­val Ax­alta

Daily Sabah (Turkey) - - Business -

DUTCH chem­i­cal gi­ant and the world’s lead­ing paint­maker Ak­zoNo­bel an­nounced Mon­day that it is in merger talks with lead­ing US ri­val, Ax­alta, which would bring to­gether two multi-bil­lion dol­lar com­pa­nies. Bloomberg News said Ax­alta is the world’s lead­ing maker of auto fin­ish paints and “the deal would com­bine two com­pa­nies with a mar­ket value of about $30 bil­lion”. In past months, Ak­zoNo­bel has been fight­ing a planned takeover by an­other U.S. ri­val, Pitts­burgh-based PPG which would have val­ued the Dutch com­pany at 26.9 bil­lion eu­ros ($32.4 bil­lion). It has re­jected three multi-bil­lion-euro takeover of­fers from PPG, spark­ing a bit­ter le­gal tus­sle with an ac­tivist in­vestor El­liott Ad­vi­sors which had pushed the tieup. Formed in 1994 from the merger of the Dutch and Swedish firms Akzo and No­bel, Ak­zoNo­bel has a 46,000-strong work­force and works in 80 coun­tries around the world. Last year, it re­ported 14.2 bil­lion eu­ros in rev­enue. But in April, un­der pres­sure due to the in­creas­ing hos­tile PPG bid, the Am­s­ter­dambased maker of such house­hold paints as Du­lux and Trimetal an­nounced plans to spin off its spe­cial­ity chem­i­cals busi­ness within 12 months. Ak­zoNo­bel said at the time that it also planned to make 150 mil­lion eu­ros in sav­ings through im­prov­ing ef­fi­ciency, with an­other 50 mil­lion eu­ros sav­ings from the sepa­ra­tion of the chem­i­cals di­vi­sion. Ax­alta, which has more than 150 years ex­pe­ri­ence, is based in Philadel­phia and em­ploys 13,300 peo­ple, with cus­tomers in over 130 coun­tries. Last year, it had net sales of $4.1 bil­lion. In a state­ment, Ax­alta con­firmed it was “en­gaged in dis­cus­sions” with Ak­zoNo­bel, but cau­tioned there were “no as­sur­ances that a de­fin­i­tive agree­ment ... will be reached or on what terms”.

Mar­kets an­a­lyst Lau­rence Alexander from U.S. global in­vest­ment bank Jef­fries said a merger would be “a bold move with a good strate­gic fit that would also strive to main­tain Ak­zoNo­bel’s in­de­pen­dence”.

Newspapers in English

Newspapers from Turkey

© PressReader. All rights reserved.