Nippon Paint makes €7.5bn offer for AkzoNobel's decorative paints business

(Sharecast News) - AkzoNobel confirmed on Monday that it has received multiple conditional and non-binding proposals from Japan's Nippon Paint for the acquisition of its decorative paints business which value the segment at €7.5bn. "The Nippon Paint proposal constitutes an alternative proposal, as defined in the merger agreement between AkzoNobel and Axalta Coating Systems, restricting AkzoNobel from any engagement," the Dulux owner said.

"It also significantly undervalues AkzoNobel's decorative paints business, as previously communicated to Nippon Paint."

AkzoNobel said its board continues to unanimously recommend the merger with US paint and coating manufacturer Axalta, "taking into account the compelling strategic rationale and benefits" as set out in the joint statement last November.

AkzoNobel announced in May that it had rejected a €12.5bn takeover proposal from Nippon Paint and Sherwin-Williams.

It said at the time that it continued to recommend the proposed all-share merger with Axalta, which will create a global coatings company with an enterprise value of about $25bn.