Overview
- AkzoNobel’s board formally rejected a €7.5 billion offer from Nippon Paint for its decorative paints division, calling the proposal a significant undervaluation of the unit.
- The offer was disclosed on Monday, July 13, after Nippon made multiple approaches in the previous month targeting the decorative business rather than the whole company.
- AkzoNobel reaffirmed its support for the planned merger with U.S. coatings group Axalta, a deal that still faces regulatory review by the U.S. Federal Trade Commission and a shareholder vote set for August 5.
- Nippon’s focused bid would reunify ownership of the Dulux brand globally and strengthen Nippon’s European footprint because the decorative unit earns roughly two thirds of its revenue in Europe.
- Markets reacted to the development with Nippon Paint shares falling about 3.8 percent, and the companies face further complexity if Nippon persists given likely regulatory scrutiny and AkzoNobel’s unwillingness to engage on the offer.