Axalta has ended merger discussions with Nippon Paint, a Japanese rival. Nippon Paint “informed Axalta that it was unwilling to meet our expectations regarding the value of the company and assume the financial leverage necessary for deal of this size,” Axalta says.
News of merger talks between Axalta and Nippon Paint broke on 22 November, one day after Axalta and AkzoNobel terminated their own merger discussions. Axalta could be worth as much as $43/share, according to Laurence Alexander, an analyst with Jefferies (New York). The exact size of Nippon’s bid for Axalta, which a Reuters report says was made on 21 November, has not been disclosed. Analysts speculated that Nippon’s bid would have had to total at least $36.50/share to prompt Axalta to end discussion with AkzoNobel.
The combined company would have generated about $8 billion/year in sales. Nippon Paint is the largest paint maker in Asia, while Axalta is a top-two global player in automotive coatings.
Shares in Axalta are currently trading at around $31, but dipped sharply after the termination of the talks was announced early this afternoon. Alexander says investor focus is likely to shift away from M&A, as discussions with Nippon and AkzoNobel went nowhere. “While some M&A premium may linger…for the most part we expect investors to shift their focus back to end-market trends, pricing, and small-bore consolidation opportunities,” he says.
By Vincent Valk
Source: Chemical Week
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
