UK: AkzoNobel said to have approached US rival over tie-up

Citing anonymous sources, Reuters reported Friday, October 27, that AkzoNobel has asked Axalta about the possibility of a merger.

It cited one of the sources to report “Axalta is in the early stages of considering a deal with Akzo Nobel, and there is no certainty that the two companies will agree to a merger.”

Axalta closed Thursday, October 26, at US$28.34, which gives it a market cap of US$6.9 billion, according to Bloomberg Markets. AkzoNobel closed Thursday at US$90.20 at for a market cap of US$22.73 billion.

AkzoNobel on October 18 reported that its automotive and specialty coatings segment within its performance coatings group saw revenue grow 1% in the third quarter. That subsector posted US$431.61 million, up from US$428.13 million between July and September 2016. The company’s auto refinishing brands include Sikkens, Dynacoat, Lesonal and Wanda.

“Growth was visible in most regions for Vehicle Refinishes and Specialty Coatings,” the company wrote. On the whole, the company’s performance coatings group’s revenue was up 2%, though some of this growth stemmed from the company having bought BASF’s industrial coatings business.

Full Content: Reuters

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