By Tom Davis
Philadelphia, Pennsylvania -- November 24, 2017 -- Axalta has announced that its merger talks with AkzoNobel have fallen through, but the company could still be acquired by another firm.
A merger agreement between Axalta and AkzoNobel fell through after the two companies were unable to “reach mutually agreeable terms.” Charles W. Shaver, Axalta’s Chairman and CEO, said in a statement: “After pursuing a potential combination of Axalta and AkzoNobel, we [Axalta] concluded we could not negotiate a transaction on terms that meet our criteria. 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.”
Hopes of a business deal for Axalta have not been shattered. Shortly after the collapse in AkzoNobel discussions, Axalta announced that Nippon Paint had inquired about acquiring the company.
Axalta said in a statement: “Axalta today confirmed that it is engaged in discussions with Nippon Paint regarding a potential acquisition of Axalta. 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.”
Following the collapse in discussions, AkzoNobel stated it would continue to focus on its goals of 15 percent return on sales and more than 25 percent return on investment. Thierry Vanlancker, CEO of AkzoNobel, commented: “I am confident that our strategy offers significant value for shareholders and other stakeholders in the short, medium and long term. We remain focused on our strategic options to continue to develop our business and improve profitability in the future.”
More information about Axalta can be found at axaltacs.com, or akzonobel.com for more information on AkzoNobel.