Akzo Nobel and Axalta end merger discussions
The merger would have created one of the biggest global paints and coatings companies and speculations about a possible merger were around for years. They became more evident after the Dutch company fought off PPG's quest to take it over. On October 30, Akzo Nobel confirmed that there were discussions with Axalta about a merger.
Akzo Nobel now wants to continue to focus on its strategy of accelerating sustainable growth and profitability through the creation of two focused businesses and remains committed to its 2020 financial guidance (15% ROS and 25% ROI).
According to Akzo Nobel's press release the separation of its Specialty Chemicals business and return of the vast majority of the net proceeds to shareholders remain on track. CEO Thierry Vanlancker commented: “I am confident that our strategy offers significant value for shareholders and other stakeholders in the short, medium and long term. We remain focused on our strategic options to continue to develop our business and improve profitability in the future.”