The Dutch paint manufacturer AkzoNobel reported this Wednesday, 27, that it rejected a joint acquisition proposal made by the Japanese Nippon Paint Holdings and the American Sherwin-Williams, valued at around 12.5 billion euros, and reiterated its support for the merger plan with Axalta Coating Systems.
According to a statement, the non-binding offer provided for a cash payment of 73 euros per AkzoNobel share, excluding regular and interim dividends. The proposal was received on April 29th and rejected by the company on May 1st.
The company further stated that an initial approach presented on April 16th had already been rejected on April 22nd.
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Under the terms of the proposal, Nippon Paint would launch an all-cash public offering for AkzoNobel. Upon completion of the transaction, the Japanese company would take over the Dutch company’s decorative paints and industrial coatings businesses, while Sherwin-Williams would separately purchase the automotive and special, marine and protective coatings divisions, as well as powder coatings.
AkzoNobel said its management and supervisory boards concluded, after review with financial and legal advisors, that the proposal “did not qualify, nor was it reasonably expected to qualify, as a ‘Superior Proposal’” in relation to the merger agreement reached with Axalta in November 2025.
According to the company, the indicative price “did not come close to adequately reflecting the value of AkzoNobel and its long-term prospects”, in addition to there being “insufficient security” regarding regulatory approvals and the division of assets between Nippom Paint and Sherwin-Willaims.
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AkzoNobel’s boards reiterated their unanimous recommendation for a merger “between equals” with Axalta, announced in November last year. The transaction is expected to create a global paint industry giant with a combined market value estimated at around US$17 billion.
