en.Wedoany.com Reported - Nippon Paint and Sherwin-Williams have abandoned their public takeover bid for AkzoNobel. At the end of May this year, the Japanese conglomerate proposed a €12.5 billion acquisition plan, under which Nippon Paint would retain AkzoNobel's decorative paints and industrial coatings businesses, while the automotive paints, marine coatings, and powder coatings divisions were planned to be sold to Sherwin-Williams.

AkzoNobel learned of this decision through a joint statement issued by the two companies. The acquisition proposal was deemed to undervalue AkzoNobel's business, lacked certainty regarding regulatory approvals, and also planned to split the company between Nippon Paint and Sherwin-Williams. For these reasons, the board of directors of the Netherlands-based AkzoNobel unanimously decided to proceed with and recommend the already-agreed merger plan with automotive paint manufacturer Axalta.

AkzoNobel and Axalta announced an equal merger agreement in November last year, structured as a share-for-share transaction, aimed at creating a global coatings leader with revenues of $17 billion and a market capitalization of $25 billion.

The merger agreement is scheduled to be voted on by shareholders of both companies in early July this year. The combined company will have a complete coatings solution portfolio comprising nearly 100 well-known brands, and is expected to achieve annual cost savings of $600 million, with 90% of these savings realized within the first three years after the merger.

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