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Akzo Nobel Confirms $30 Billion Merger With Smaller U.S. Rival Axalta

Updated On 30 Oct, 2017 Published On

On Monday Akzo Nobel NV (AKZOY) confirmed that it is in talks with Axalta Coating Systems about a possible merger, sending shares down in Amsterdam.

The Dutch paintmaker opened up that it was in "constructive discussions" about a "merger of equals" of AkzoNobel Paints & Coating and Axalta and it would create a company with the market value of about $30 billion.

AkzoNobel had been responding to market speculation about the talks that sent Axalta's shares up to 16.95% Friday to close at $33.15 in New York.

Akzo Nobel Confirms $30 Billion Merger With Smaller U.S. Rival Axalta

Akzo Nobel Confirms $30 Billion Merger With Smaller U.S. Rival Axalta

Source: thestreet

Changing hands at €76.22, Akzo Nobel shares were down 1.64% in Amsterdam in the first half hour of trading. The company is under pressure from activist investor Elliott management months after it rejected $30 billion takeover approach from PPG Industries PPG earlier this year.

Video: Akzo Nobel seeks $30 billion merger with smaller US rival Axalta

PPG can make another bid from Dec. 1, under Dutch takeover law.