Toronto, Ontario — Last week, automotive coatings giants Axalta and Akzo-Nobel announced plans to combine in an all-stock transaction valued at about US$17 billion. This week’s Tuesday Ticker looks at how the proposed merger is affecting the world’s leading automotive coatings providers.
Axalta opened at about US$27.80 on November 19 and is now trading near US$29.64, up US$1.84 or about 6.6 percent. The company has received formal feedback from significant shareholders who are requesting changes to the terms of the merger. The company has also recently released updates on its refinish technology portfolio, including new low energy curing systems.
Akzo-Nobel traded around US$53.42 on November 19 and is now trading near US$53.92, up about fifty cents or 0.9 percent. The company recently reported improved profitability, supported by cost control measures and stronger pricing in several product lines.
PPG began the period near US$94.34 and is now trading around US$97.21, up US$2.87 or about 3.0 percent. In recent weeks, the company reported higher sales in aerospace, protective and marine coatings and posted quarterly results that exceeded analyst expectations. The company also recently provided updated guidance that reflects softer demand in automotive refinish.
Sherwin-Williams traded at about US$329.78 on November 19 and is now trading near US$336.68, up US$6.90 or about 2.1 percent. The company recently completed the acquisition of a large Brazilian architectural paint business, adding scale in a major regional market.
BASF traded around US$12.43 on November 19 and is now trading only slightly above that level. The company has been restructuring its coatings portfolio, including the planned sale of a majority stake in its automotive coatings division and the divestment of several decorative paint businesses.
