Akzo Nobel And Axalta Coating Systems End Merger Talks

(RTTNews) - Axalta Coating Systems (AXTA) confirmed that talks with AkzoNobel have ended regarding a potential merger of equals transaction between Axalta and Akzo's Paints and Coatings business, as the companies were unable to reach mutually agreeable terms. Axalta continues to pursue other value-creating alternatives.

"After pursuing a potential combination of Axalta and Akzo, we concluded we could not negotiate a transaction on terms that meet our criteria," said Charles W. Shaver, Axalta's Chairman and Chief Executive Officer.

Separately, AkzoNobel confirmed that the company and Axalta ended their discussions without agreement.

AkzoNobel said it continues to focus on its strategy of accelerating sustainable growth and profitability through the creation of two focused, high-performing businesses and remains committed to its 2020 financial guidance (15% ROS and >25% ROI).

The separation of the AkzoNobel Specialty Chemicals business and return of the vast majority of the net proceeds to shareholders remain on track.