By Tom Davis
Philadelphia, Pennsylvania -- December 1, 2017 -- 'It's our way or the highway’ seems to be the message coming out of Axalta after the company rejected a bid from its latest suitor. Talks of an acquisition between the US-based company and Nippon Paint have fallen through after just one week.
Axalta is believed to have rejected a $9.1 billion USD ($11.6 billion CAD) bid from the Japanese paint manufacturer, according to a report from Reuters. The coatings company, headquartered out of Philadelphia, claims Nippon Paint was “unwilling to meet our expectations regarding the value of the company and assume the financial leverage necessary.”
Axalta officially announced that it has broken off discussions of a possible acquisition from Nippon Paint.
“While neither deal came to fruition, the keen interest by these companies underscores Axalta’s global leadership position,” said Charles W. Shaver, Axalta’s Chairman and Chief Executive Officer. “Our current and future operational plans have not wavered during these discussions. We are well positioned to continue as a standalone growth company and will remain disciplined in generating superior long-term value for our shareholders.”
This comes just one week after the Japanese paint manufacturer gatecrashed plans between Axalta and AkzoNobel, after the two companies were unable to “reach mutually agreeable terms.” Shaver previously announced 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.”
Following the breakdown in talks with Nippon paint, Shaver also thanked the company's “customers, investors, suppliers, and employees for their patience and support” while it explored the potential deals.
More information about Axalta can be found at axaltacs.com.