Akzo Nobel and Axalta Coating Systems Abandon Merger Talks
22 November 2017 - 8:43AM
Dow Jones News
By Ben Dummett
Akzo Nobel NV and U.S. rival Axalta Coating Systems have
abandoned their merger talks after failing to reach an agreement on
terms around structuring the deal and other issues, according to a
person familiar with the matter.
The deal would have created a multibillion-dollar paints and
coatings giant. Industries ranging from automotive to mining use
coatings to prevent corrosion and improve durability.
The combination of the two companies could have boosted profit
growth by lowering raw material costs, eliminating overlapping
operations, expanding the combined entity's products and adding new
customers.
Now Akzo and Axalta face that challenge as separate companies at
a time of rising raw material costs and sluggish demand. In the
third quarter, Amsterdam-based Akzo reported a 13% drop in adjusted
operating profit, hurt in part by higher raw material costs.
Meanwhile, Axalta posted a 20% drop in adjusted net income in the
same period, amid lower volumes in North America.
(END) Dow Jones Newswires
November 21, 2017 16:28 ET (21:28 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Akzo Nobel NV (EU:AKZA)
Historical Stock Chart
From Apr 2024 to May 2024
Akzo Nobel NV (EU:AKZA)
Historical Stock Chart
From May 2023 to May 2024
Real-Time news about Akzo Nobel NV (Euronext): 0 recent articles
More Akzo Nobel News Articles