Cans of Dulux paint, an AkzoNobel brand, are seen on the shelf of a DIY retail store in Manchester, Britain, June 14, 2024. REUTERS
TOKYO/GDANSK, June 3 (Reuters) – Nippon Paint and Sherwin-Williams said on Wednesday they had decided to terminate their efforts to jointly acquire rival paint maker AkzoNobel.
Shares of the Dulux paint maker fell more than 20% in early trade after being halted initially, and were set for their worst-ever trading day if the losses hold.
“A lot of people may have thought that another offer from Sherwin-Williams and Nippon Paint would be forthcoming,” Berenberg analyst Sebastian Bray said.
The companies’ decision followed AkzoNobel’s rejection of their €12.5 billion ($14.5 billion) cash takeover offer last week, which had sent the Dutch company’s shares 20% higher.
AkzoNobel said in a press release on Wednesday that both its boards unanimously continued to recommend its planned merger with U.S. coatings maker Axalta.
“Ultimately the Axalta merger now appears the most likely outcome,” Bray said.
($1 = €0.8610)
Reporting by Kantaro Komiya in Tokyo and Dimitri Rhodes in Gdansk; Editing by Jacqueline Wong
