The Dutch paint manufacturer behind the Dulux brand has turned down a substantial buyout proposal from two industry competitors, the company announced Wednesday.
AkzoNobel declined a cash offer worth €73 ($85) per share from Nippon Paint and Sherwin-Williams, calling the bid inadequate despite representing a 39% markup over the company’s previous closing stock price of €52.52.
The rejection sent AkzoNobel shares soaring 16% higher, with stock prices climbing to €61 by 0813 GMT, marking what could be the company’s strongest trading performance since October 2008.
Company leadership cited several concerns with the joint proposal, stating it failed to properly value the business, lacked certainty around regulatory approval processes, and would have divided the company between the two potential buyers.
The proposed arrangement would have seen Nippon Paint take control of AkzoNobel while keeping its decorative paints and industrial coatings operations, then transfer the automotive, marine and powder coatings segments to Sherwin-Williams.
AkzoNobel’s board remains committed to its previously announced combination with U.S. coatings manufacturer Axalta, which the company views as a better strategic option.
“Neither proposal qualified as a ‘potentially superior’ offer, compared to the Axalta merger,” a company spokesperson told Reuters.
The Axalta deal would establish a combined coatings enterprise valued at $25 billion, with AkzoNobel CEO Greg Poux-Guillaume leading the merged organization.
Plans call for the new entity to maintain dual stock listings in Amsterdam and New York, with completion expected between late 2026 and early 2027. The companies project $600 million in yearly cost reductions within three years of finalizing the combination.
Investment firm KBC noted in an investor communication that “Akzo considers its own merger proposal with Axalta to be superior and pushes ahead on this track.”
