ppg axalta merger

CDR in talks to partner with PPG (PPG) for Axalta (AXTA) bid - Reuters. Plus, a merger with Axalta would also help Akzo Nobel to shut the door on future offers by PPG. Indeed, PPG is reportedly looking at making an offer, and Akzo Nobel and Axalta previously discussed a merger in 2017, while private equity firms are also believed to be circling the company. PPG CEO‘s issues open letter to Akzo Nobel shareholder and a third offer: Article Akzo Nobel unveils new strategy to split up: Article Milliken acquires Keystone Aniline Corporation : Article Axalta Coating Systems to acquire Valspar's North American industrial wood coatings business: Article Gig economy is finally en route to deliver on pay: Food delivery giant Just Eat offers its drivers an hourly wage piling pressure on rivals to follow suit Employees will shift to either the new global headquarters at its existing offices inGlen Mills, Pennsylvania, or to Axalta’s Global Innovation Center in the Philadelphia Navy Yard with key technical staff. Akzo underlined in a brief statement that the talks would not affect its decision to sell its . The sale of Akzo Nobel ’s specialty-chemicals business to private equity group Carlyle and Singapore’s sovereign-wealth fund, announced Tuesday, will … Axalta announced a restructuring program. Axalta’s regional headquarters inBasel, Switzerland, andShanghai, China, will continue to play important roles in the day-to-day management of Axalta’s people and resources as key business leadership at both regional and global headquarters will be strengthened as part of this process. Stock Advisor launched in February of 2002. Axalta shares reversed losses in extended trading hours in New York after Reuters reported on Nippon's offer, to trade up 3.3 percent at $35.01. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. -. So with the takeover buzz and Buffett behind the stock, what is there not to like about it? “to more closely align its global organization with its two global business segments to drive improved performance. The former DuPont paint and coatings business is downsizing its operations and closing its Center City Philadelphia headquarters. Delaware Business Now. ", 3 Things to Expect From Berkshire Hathaway in 2021, These 3 Stocks Are an Ideal Trio to Gift College Students, 3 Surefire Stocks to Buy When the Stock Market Inevitably Crashes, Why Berkshire Hathaway Is a Retiree's Dream Stock, Warren Buffett Should Buy These Stocks in 2021, Copyright, Trademark and Patent Information. Here's why. ING analyst Stijn Demester even dubs a merger as the "ideal poison pill” as it would make Akzo Nobel "undigestable” for PPG. Moreover, If a bid doesn't transpire, you will be left holding a stock you might not want, and Axalta isn't a particularly cheap stock. Since its sale to private equity owners and becoming a public company, Axalta has worked to get itself out from under the shadow of DuPont and align itself with Philadelphia’s business community. A group comprised of New York-based private equity firm Clayton, Dubilier & Rice (CDR) and rival PPG (NYSE: PPG) is seen as in the pole position to land the deal. “Bringing together our corporate, business, and technology teams will foster increased collaboration, accelerate innovation and enhance operational efficiency,” Bryant noted. For reference, the performance coatings segment has roughly double the margin of transportation coatings -- which is good news, because the refinish market is less cyclical. A tie-up with Axalta, the former car paint unit of DuPont, is be the major first merger being pursued by Vanlancker, who took over as Akzo Nobel CEO … Published Mon, Oct 30 2017 4:11 AM EDT Updated Mon, ... as it is clear that they want to stay out of the hands of PPG, and Axalta knows that." I write about electrical equipment, transportation, and multi-industry industrial stocks. 0. It also includes listings for associations and consultants, with detailed contact information for all companies. The company's main focus is on the automotive market, supplying both the original equipment manufacturer (OEM) and refinish markets. On October 30th 2017, in response to market speculation, AkzoNobel confirmed it was in constructive discussions regarding a potential merger of the AkzoNobel Paints and Coatings business with Axalta. Indeed, PPG is reportedly looking at making an offer, and Akzo Nobel and Axalta previously discussed a merger in 2017, while private equity firms are also believed to be circling the company. Of course it makes sense to follow a legendary investor like Buffett, but the fact is that with Axalta, Berkshire Hathaway owns slightly more than 10% of the company, and Buffett's word carries huge influence over the market. However, growth in the refinish market wasn't enough to send overall sales higher. The Dutch company said Monday it’s in “constructive discussions” regarding a merger of equals with Axalta Coating Systems Ltd. to create a leading global paints and coatings … Akzo Nobel N.V. (AKZA; AKZOY) AkzoNobel and Axalta ended their discussions without agreement. Axalta Coating Systems Ltd., the car-paint maker exploring a sale, has drawn preliminary interest from rival companies, according to people familiar with … Within its transportation coatings segment (38% of sales), management claims to be the second-largest player in the global light vehicle transportation coatings market and the leading supplier to the North American heavy-duty truck market. Akzo Nobel NV is exploring a combination with the biggest maker of car coatings, almost doubling the size of its paint business in a bid to create a deterrent should PPG Industries Inc. attempt another takeover as early as December. Nine days prior, Axalta announced it’d ended “merger of equals” talks with Dutch paint firm AkzoNobel, which itself had shot down purchase attempts by PPG. “to more closely align its global organization with its two global business segments to drive … Axalta to vacate Philadelphia headquarters in restructuring move. 26bil (US$30.2bil) takeover offer from US rival PPG Industries. Robert W. Bryant, Axalta’s CEO commented said an earlier review “provided us with valuable insights into areas where we had the opportunity to simplify and streamline our decision-making processes. The Dutch company said Monday it’s in “constructive discussions” regarding a merger of equals with Axalta Coating Systems Ltd. to create a leading … As you can see, you can buy automotive suppliers on much lower valuations, and if you want, you can buy the high-valuation-but-recession-resistant auto parts retailers. Reuters reported last Friday that Akzo had approached Axalta about a possible merger, sending Axalta’s shares 17% higher. Cleveland, Ohio – About six months after rejecting an unsolicited, $28.8 billion merger proposal from PPG, Dutch automotive paint supplier Akzo Nobel is considering merging with Axalta, the former paint division of DuPont.. All told, I think the answer is no, at least it's a no right now. The company did keep administrative operations in Glen Mills, north of the Delaware line. Dulux paint maker AkzoNobel in talks over $30 billion merger with Axalta DULUX paint maker AkzoNobel is in talks over a $30 billion (£22.8 billion) merger with US rival Axalta. That said, there are better value stocks with which you can get automotive exposure right now, and the stock is arguably being supported by takeover speculation that may or may not occur. It comes just months after Akzo successfully fended off PPG in a bruising €27bn takeover battle that saw the US paints group lose in a drawn-out and bitter affair. Posts labeled Special to Delaware Business Now are typically submitted items that are updated and sometimes rewritten in news style. Breaking News - Our International Buyers Guide contains information on chemicals and equipment suppliers for the paint and coatings industry. Blue collar workers physically making a better world. Returns as of 12/26/2020. The company has also been viewed as a merger candidate. Axalta will close itsCenter City Philadelphia offices. Industrial sector focus. Let the paint wars commence. The program has included job cuts and giving global business units profit and loss responsibilities. Axalta is one of the smaller players in the global coatings sector. He gets to have a huge influence on whether the company is sold and at what price, but you do not. Surge in Covid-19 cases continues, with three new deaths reported. Second, you are not Warren Buffett! The transaction is expected to close in the first quarter 2020, subject to customary closing conditions. November 17, 2020. Meanwhile, in performance coating (62% of sales), the company is the leading player in the refinish market (which tends to be less cyclical than the automotive OEM market) and the second-largest player in the industrial coatings market. Video: Biden, Harris offer remarks on the economy after Zoom meeting with C... Biden says he will prevail as votes are tallied in battleground states, Note to our readers regarding the featured story, Coronavirus cases stay above 300 a day over the weekend. The new company would trail the Sherwin-Williams/Valspar combination and PPG globally. Paint giant Akzo Nobel was in merger talks with Axalta in 2017, but discussions ended with no detail. Based on his superlative track record, following Warren Buffett into a stock can hardly be described as a bad idea. Axalta first entered talks with Dutch rival Akzo Nobel in October 2017 over a potential $30bn merger between the two companies. The following chart compares its enterprise value (market cap plus net debt) to earnings before interest, tax, depreciation, and amortization (EBITDA) with a collection of automotive suppliers -- reflecting its exposure to automotive OEM -- and also a couple of auto parts retailers, O'Reilly and AutoZone -- reflecting its automotive refinish exposure. Shares 17 % higher had approached Axalta about a key corporate matter such as bad. His superlative track record, following Warren Buffett into a stock can hardly be described as a merger.! To a potential sale, and the company is sold and at price... - Reuters expected to close in the global coatings sector that there is something noble about the industrial.. 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