Nippon Paint, Sherwin-Williams End AkzoNobel Pursuit
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- Nippon Paint Group and Sherwin-Williams said they have ended efforts to jointly acquire AkzoNobel.
- AkzoNobel said the decision follows its earlier rejection of the companies’ joint all-cash offers.
- AkzoNobel’s boards continue to unanimously recommend the proposed merger of equals with Axalta.
Nippon Paint Group and The Sherwin-Williams Co. have ended efforts to jointly acquire AkzoNobel.
The companies announced June 3 that they decided to end their pursuit after AkzoNobel’s previously disclosed rejection of two joint all-cash offers. AkzoNobel also confirmed that Nippon Paint and Sherwin-Williams are no longer pursuing a public offer for the company.
Both AkzoNobel boards said they continue to unanimously recommend the proposed merger of equals between AkzoNobel and Axalta Coating Systems Ltd. AkzoNobel said the recommendation takes into account the strategic rationale and benefits outlined in the companies’ joint press release from Nov. 18, 2025.
As PCI previously reported, AkzoNobel confirmed May 27 that it rejected a conditional and nonbinding proposal from Nippon Paint Holdings Co. and The Sherwin-Williams Co. The proposal, received April 29 and rejected May 1, offered EUR 73.00 in cash per share, excluding regular annual and interim dividends, and followed an initial proposal submitted April 16 and rejected April 22.
Under the proposal outlined by AkzoNobel, Nippon Paint would have launched the all-cash public offer for AkzoNobel. Upon completion, Nippon Paint would have retained AkzoNobel’s Decorative Paints and Industrial Coatings businesses, while AkzoNobel’s Automotive & Specialty Coatings, Marine & Protective Coatings and Powder Coatings businesses would have been sold separately to Sherwin-Williams.
AkzoNobel previously said its Board of Management and Supervisory Board reviewed the proposal with financial and legal advisers and concluded it did not qualify, nor was it reasonably expected to qualify, as a “Superior Proposal” under the company’s merger agreement with Axalta. The company cited several factors, including the indicative offer price, deal certainty related to regulatory clearances and the proposed separation of the business, and the interests of AkzoNobel stakeholders.
Nippon Paint Group and Sherwin-Williams previously said the proposal did not include financing conditions and was not subject to Sherwin-Williams or Nippon Paint shareholder approval. The companies also said the proposed structure would give AkzoNobel’s businesses “clear strategic ownership” within their respective platforms.
AkzoNobel said it will provide further updates as appropriate.
Sources: AkzoNobel, Sherwin-Williams, Nippon Paint Group
Related PCI Coverage
- PCI covered the original announcement of the cash offer from Sherwin-Williams and Nippon Paint.
- PCI followed up with editorial coverage discussing the offer and next steps.
- AkzoNobel and Axalta previously announced a proposed merger of equals, outlining leadership structure and the expected approval process.
- PCI examined what the proposed AkzoNobel–Axalta merger could mean for the future of the paint and coatings industry, including comparisons to past transactions involving Sherwin-Williams and PPG.
- PCI’s Chief Editor reviewed the first week of industry and market reaction following the merger announcement.
- Two more stories about investor reactions can be found here:
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