Sherwin-Williams (SHW) and Nippon Paint's bid to acquire AkzoNobel for 73 euros ($84.99) per share in cash was rejected, with the Dutch coatings maker reaffirming its support for the planned merger with Axalta Coating Systems (AXTA), the company said Wednesday.
The proposal called for Nippon Paint to retain AkzoNobel's Decorative Paints and Industrial Coatings units, while Sherwin-Williams would acquire its other coatings businesses, AkzoNobel said.
AkzoNobel's boards said the offer undervalued the company and raised concerns over deal certainty, regulatory approvals and stakeholder protections.
The company added that it continues to unanimously support its merger with Axalta ahead of the expected release of a U.S. Securities and Exchange Commission Form F-4 tied to the deal.
Shares of Axalta Coating Systems were up more than 7% in Wednesday premarket activity.
Price: $32.30, Change: $+2.30, Percent Change: +7.67%