Akzo approaches Axalta for merger

FRANKFURT/NEW YORK: Dutch paints and coatings giant Akzo Nobel NV has approached U.S. rival Axalta Coating Systems Ltd to discuss a possible merger that would create a global coatings giant, according to sources familiar with the matter.

Akzo Nobel’s move indicates that its new CEO Thierry Vanlancker is continuing to look for big deals as a way to buttress the company, after it managed to fend off a takeover approach by PPG Industries earlier this year.

Philadelphia-based Axalta is in the early stages of considering a deal with Akzo Nobel, and there is no certainty that the two companies will agree to a merger, one of the sources said on Friday.

The sources asked not to be identified because the negotiations are confidential. Akzo Nobel and Axalta did not respond to requests for comment.

Shares in Axalta soared nearly 22 percent on the news and were last up 18 percent at $33.27 in early afternoon trading, giving the company a market capitalization of $8.1 billion. Akzo Nobel’s shares had finished flat in Amsterdam, valuing it at 19.5 billion euros.