AkzoNobel Shares Jump After $14.5 Billion Nippon Paint, Sherwin-Williams Bid — Update

By Adria Calatayud

Dutch paint maker AkzoNobel said it rejected a roughly 12.49 billion-euro ($14.53 billion) takeover proposal from rivals Nippon Paint Holdings and Sherwin-Williams, sticking to its plans to combine with Axalta Coating Systems.

Shares in Akzo jumped as much as 21% in European midday trading Wednesday. Nippon Paint closed 2.1% lower in Tokyo, while Axalta shares were up more than 6% and Sherwin-Williams's were little moved in U.S. premarket trading.

With Japan's Nippon Paint and Cleveland-based Sherwin-Williams throwing their hat in the ring to buy Akzo, the pair attempted to trump a proposed tie-up between Akzo and Axalta. Akzo and Philadelphia-based Axalta in November agreed to form a trans-Atlantic group with a combined market value of some $17 billion.

The move has echoes of the dealmaking frenzy that jolted the paints and coatings industry nearly a decade ago. At the time, three multibillion-dollar deals were attempted but fell through--Akzo fended off a takeover bid from PPG Industries and tried to buy Axalta, which walked away from Akzo to pursue talks with Nippon Paint that were eventually abandoned.

Akzo said its management and supervisory boards reviewed the proposal from Nippon Paint and Sherwin-Williams and concluded it wasn't superior to a merger agreement with Philadelphia-headquartered Axalta announced in November. Akzo's boards continue to recommend the all-stock deal with Axalta, the Amsterdam-based company said.

Nippon Paint and Sherwin-Williams didn't respond to requests for comment.

Under the proposal, Nippon Paint would launch an all-cash offer for Akzo at 73 euros a share, and split the Dutch company's assets with Sherwin-Williams after completing the acquisition, Akzo said. The price represents a 39% premium to Akzo's Tuesday closing share price.

Nippon Paint would keep Akzo's decorative paints and industrial coatings businesses, while Sherwin-Williams would separately buy its operations in the automotive and specialty coatings, marine and protective coatings and powder coatings segments, Akzo said.

Akzo said its boards considered the price offered by Nippon Paint and Sherwin-Williams didn't adequately reflect its value and long-term prospects, and that there wasn't enough certainty that the split of the business between the two buyers would get regulatory clearances.

European activist investor Cevian is the biggest shareholder in Akzo, with a disclosed stake of 10.15%.

"We have noted AkzoNobel's announcement regarding the proposal from Nippon Paint and Sherwin-Williams, and the unanimous decision of AkzoNobel's board--including Cevian Partner Robert Schuchna--in respect thereof and have nothing further to add," a Cevian spokesperson said.

Akzo said it rejected the proposal on May 1 and that it had also turned down an initial approach on April 22.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 27, 2026 07:13 ET (11:13 GMT)