Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Axalta Coating Systems Ltd    AXTA   BMG0750C1082

AXALTA COATING SYSTEMS LTD (AXTA)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Axalta Coating : Akzo Nobel, Axalta Confirm Talks for Merger of Equals

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/30/2017 | 08:42am CET
By Ben Dummett 

Akzo Nobel NV and U.S. rival Axalta Coating Systems Ltd. confirmed Monday they are in talks to join forces in a merger of equals that would create a multibillion-dollar coating and paints giant.

The deal would involve the Dutch paint company first proceeding with its existing plan to spin off its specialty chemicals business and distribute the bulk of the proceeds to shareholders. Akzo said that plan, which is unaffected by the Axalta talks, remains on track for April 2018.

The announcement of a potential merger of equals of Akzo's paints and coatings business with Axalta's operations confirms a Wall Street Journal article on the possible deal structure.

The combined company would have added scale to generate better pricing for raw materials, eliminate overlapping operations and gain new customers to help revive profit growth. Coatings are used to prevent corrosion and improve durability across sectors including the automotive, electronics, mining and marine industries.

Axalta cautioned that the talks may not lead to completion of a deal.

A merger of equals typically involves companies with a similar market value. The deals are structured through a share swap and shareholders of the companies don't receive any significant premium for their stock. This type of structure would be crucial for Akzo's attempt to win support from its shareholders, some of whom have been concerned that the Amsterdam-based company could seek a major acquisition, potentially paying a significant premium, to protect itself against an unwanted suitor.

Earlier this year, Elliott Management Corp., the well-known activist investor and one of Akzo's biggest shareholders, mounted a bold public-relations and legal campaign to force Akzo into unwanted sale talks with its U.S. paints rival PPG Industries Inc. The $28 billion takeover attempt ultimately failed. In August, Elliott and Akzo reached a truce over the Dutch company's alternative plan to separate its specialty-chemicals business and distribute the proceeds to shareholders to generate value for investors.

An Elliott spokeswoman couldn't immediately be reached for comment Monday.

Currently, Akzo has market value of about $22.6 billion, compared with Axalta's value of about $8.1 billion. That gulf in valuation precludes a merger of equals and would instead require Akzo paying a takeover premium to acquire Axalta. By selling or spinning off the specialty chemicals business first as a condition to a deal with Axalta, Akzo's market value would likely fall more closely in line with its Philadelphia-based rival. Some analysts estimate the specialty chemicals business could be valued at as much as $10 billion, which would no longer be reflected in Akzo's market capitalization after the spinoff.

Even with the spinoff of the specialty chemicals business, Akzo could face difficulty getting its shareholders to support an Axalta deal because the merger would make it more expensive than it otherwise would be for a potential suitor.

On Friday, Swiss chemicals company Clariant AG and U.S.-based Huntsman Corp. ended their proposed $15 billion merger after Clariant's largest shareholder, activist investor White Tale Holdings, opposed the deal. That led some analysts to speculate that Clariant is now a prime takeover target in the consolidating chemicals sector.

That said, talks of a possible merger between Akzo and Axalta might appeal to shareholders as the companies seek ways to boost slumping profits, allowing a combined company to cut costs and potentially broaden its customer base.

For the third quarter, Akzo reported a 13% drop in adjusted operating profit, hurt in part by higher raw-material costs and sluggish demand from the marine industry. Axalta's adjusted net income fell 20% over the same period amid lower volumes in North America and higher raw-material costs.

Write to Ben Dummett at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AXALTA COATING SYSTEMS LTD
02/13AXALTA COATING : 2018 Winter Olympic Athletes Will Sport Axalta Coatings
AQ
02/09AXALTA COATING : 2018 Winter Olympic Athletes Will Sport Axalta Coatings
BU
02/08AXALTA COATING : Releases Fourth Quarter and Full Year 2017 Results
AQ
02/06AXALTA COATING SYSTEMS (NYSE : AXTA) reported earnings of $0.37 per share beatin..
AQ
02/06AXALTA COATING : reports 4Q loss
AQ
02/06AXALTA COATING SYSTEMS LTD. : Results of Operations and Financial Condition (for..
AQ
02/06AXALTA COATING : Releases Fourth Quarter and Full Year 2017 Results
BU
02/06AXALTA COATING SYSTEMS LTD : Axalta Coating Systems Ltd. to Host Earnings Call
AC
01/25AXALTA COATING : Apps Bring Information, Speed, Efficiency and Accuracy to Users..
AQ
01/18AXALTA COATING : Apps Bring Information, Speed, Efficiency and Accuracy to Users..
AQ
More news
News from SeekingAlpha
02/18Tracking Glenn Greenberg's Brave Warrior Advisors Portfolio - Q4 2017 Update 
02/18Tracking Lou Simpson's SQ Advisors Portfolio - Q4 2017 Update 
02/15Tracking Warren Buffett's Berkshire Hathaway Portfolio - Q4 2017 Update 
02/06Axalta Coating Systems' (AXTA) CEO Charles Shaver on Q4 2017 Results - Earnin.. 
02/06Axalta Coating Systems 2018 Q4 - Results - Earnings Call Slides 
Financials ($)
Sales 2018 4 739 M
EBIT 2018 597 M
Net income 2018 324 M
Debt 2018 2 728 M
Yield 2018 -
P/E ratio 2018 23,29
P/E ratio 2019 20,03
EV / Sales 2018 2,15x
EV / Sales 2019 1,99x
Capitalization 7 445 M
Chart AXALTA COATING SYSTEMS LTD
Duration : Period :
Axalta Coating Systems Ltd Technical Analysis Chart | AXTA | BMG0750C1082 | 4-Traders
Technical analysis trends AXALTA COATING SYSTEMS LTD
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 33,7 $
Spread / Average Target 10%
EPS Revisions
Managers
NameTitle
Charles W. Shaver Chairman & Chief Executive Officer
Dan Key Senior Vice President-Operations & Supply Chain
Robert W. Bryant Chief Financial Officer & Executive Vice President
Barry S. Snyder Chief Technology Officer & Senior Vice President
Aaron Weis Chief Information Officer & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
AXALTA COATING SYSTEMS LTD-4.70%7 514
SHERWIN-WILLIAMS-1.07%37 935
PPG INDUSTRIES-0.43%29 601
AKZONOBEL7.15%24 787
ASIAN PAINTS-1.88%17 049
NIPPON PAINT HOLDINGS CO LTD-1.51%10 584