AkzoNobel, Axalta File EU Remedies to Save $25B Merger
AXTA sits 37% above its 52-week low of $24.937.
Summary
AkzoNobel and Axalta formally filed remedies with the European Commission on Thursday to win approval for their $25 billion merger of equals. The concession is the sale of AkzoNobel's vehicle refinish business, and the filing automatically extends the EU's review deadline by 10 working days into November. This is the concrete step after the Oct 8 Reuters report that Brussels would clear the deal with conditions, and it follows the shareholder vote approving the all-share combination on Aug 5. Axalta is the more directly affected name here — the deal is its entire thesis, and the stock trades near $34 with a market cap under $7.5B against a $25B transaction. The Commission will now canvass rivals and customers before clearing, demanding more, or opening a full Phase 2 probe. Sherwin-Williams (SHW) is a competitor in the coatings space, not a party to the deal, and would only be affected indirectly by consolidation. Watch for the EU decision in November.
At the time of this announcement, AXTA was trading at $34.12 on NYSE in the Manufacturing sector, with a market capitalization of approximately $7.3B. The 52-week trading range was $24.94 to $38.61. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.