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Dulux maker AkzoNobel is eyeing $9.2 billion Axalta takeover in a mega cross-border deal.
For context, Axalta makes special coatings and finishes used in industries like car manufacturing. Akzo Nobel, on the other hand, owns well-known paint and home-improvement brands such as Dulux, Cuprinol, Hammerite and Polyfilla.
What’s poppin’: the deal follows multiple failed attempts by the Dulux and Cromax makers to join forces. Their 2017 talks collapsed after both sides couldn’t settle on terms.
The combined company will be initially dual-listed in Amsterdam and New York before moving to a single NYSE listing.
One snag, though: the paint and coatings industry has had a tough few years. Higher tariffs and a slowing global economy mean people and businesses are spending less on paints, which has hurt sales. Because of this, Akzo Nobel recently lowered its earnings forecast.
To deal with the slowdown, the company has been cutting costs and trying to work more efficiently.
Why this deal matters: if AkzoNobel and Axalta come together, it creates a much bigger, more competitive global player during a time when demand is weak and costs are rising.
