EU Set to Clear $25B AkzoNobel-Axalta Merger With Divestiture Condition
AXTA sits 30% above its 52-week low of $24.937.
Summary
EU antitrust regulators are expected to clear the $25 billion AkzoNobel-Axalta merger with conditions after a preliminary review, according to people familiar with the matter. The companies plan to offer to sell AkzoNobel's vehicle refinish business to address competition concerns, and will submit the offer next week, extending the EU deadline by 10 working days. The companies met with the EU watchdog on Wednesday to discuss the deal, and the current Commission's deadline is October 22. Earlier concerns about powder coatings business overlaps have been resolved. This is a major step toward closing the deal announced last November, which shareholders approved in August. The divestiture of the refinish unit is a material concession but removes a key regulatory hurdle. The merger remains subject to final EU approval and other closing conditions.
Updated with a Reuters report · What changed
Updates
· Reuters — The companies will offer to sell AkzoNobel's vehicle refinish business, not Axalta's, and will submit the offer next week, extending the EU deadline by 10 working days.
- The companies met with the EU watchdog on Wednesday to discuss the deal.
- The current Commission's deadline is October 22.
- Earlier concerns about powder coatings business overlaps have been resolved.
At the time of this announcement, AXTA was trading at $32.42 on NYSE in the Manufacturing sector, with a market capitalization of approximately $6.9B. 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 8 out of 10. Source: Reuters.