Foreign media: paint giant PPG talked merger with AKZO NOBEL2017.05.09 14:33
Related sources, the world's largest paint company PPG and its competitors - AKZO NOBEL Akzo (Holland Nobel) are discussing the merger. Once it's done, it will form a $42 billion chemical giant, will be one of the world's biggest cross-border deals this year.
After the announcement, AKZO NOBEL's U.S. shares rose 12%, the current market value of more than $17 billion, PPG shares closed up 6%, the current market value is about $26 billion.
PPG and AKZO NOBEL, as the two largest in the paint industry, the range of products ranging from iPhone protective coatings to industrial paints. PPG is located in the United States, worth about $27 billion 300 million, the world's largest automotive and aerospace coatings manufacturers; AKZO NOBEL is located in Holland, is Europe's largest supplier of coatings and the world's largest protective and marine coatings manufacturers.
According to foreign media reports, it is not clear whether the acquisition negotiations between the two sides is friendly, or it is the PPG hostile takeover attempt. However, according to AKZO NOBEL stakeholders pointed out that AKZO NOBEL has sufficient capacity to deal with hostile acquisitions.
Bernstein analyst Jeremy Redenius commented, "we believe that this merger is amazing and amazing potential, its logic and potential is similar to U.S. industrial gas giant Praxair and Germany Linde merger, to combine the first and second player relatively decentralized in the world together.