", 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. “to more closely align its global organization with its two global business segments to drive … PPG (NYSE: PPG) today announced that it has reached a definitive agreement to acquire Industria Chimica Reggiana (ICR) S.p.A., a manufacturer of paints and coatings for the automotive refinish and light industrial coatings industries. 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 The sale of Akzo Nobel ’s specialty-chemicals business to private equity group Carlyle and Singapore’s sovereign-wealth fund, announced Tuesday, will … 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.. 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. 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. The program has included job cuts and giving global business units profit and loss responsibilities. First, it's never a good idea for private investors to buy a stock buoyed by takeover speculation that they wouldn't ordinarily hold. Axalta first entered talks with Dutch rival Akzo Nobel in October 2017 over a potential $30bn merger between the two companies. 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. 26bil (US$30.2bil) takeover offer from US rival PPG Industries. 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. Let the paint wars commence. Whichever way you look at it, it's clear that the marginal difference in the company's prospects will come from light vehicle OEM coatings and industrial coatings. Axalta announced a restructuring program. The company did keep administrative operations in Glen Mills, north of the Delaware line. ING analyst Stijn Demester even dubs a merger as the "ideal poison pill” as it would make Akzo Nobel "undigestable” for PPG. Cumulative Growth of a $10,000 Investment in Stock Advisor, The Warren Buffett Holding You've Never Heard Of @themotleyfool #stocks $BRK-A $BRK-B $SHW $PPG $AKZOY $AXTA $MGA $LEA $AZO $ORLY $ADNT, currently reviewing "strategic alternatives. 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. Akzo underlined in a brief statement that the talks would not affect its decision to sell its . 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. Axalta to vacate Philadelphia headquarters in restructuring move. Blue collar workers physically making a better world. 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. 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. 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. For more information on the company,, visitaxalta.com. 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 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. However, growth in the refinish market wasn't enough to send overall sales higher. Management is open to a potential sale, and the company has been subject to continual takeover speculation. By. “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. Stock Advisor launched in February of 2002. 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. Dutch paints and coatings giant Akzo Nobel NV has approached U.S. rival Axalta Coating Systems Ltd to discuss a possible merger that would create a global coatings giant, according to... | October 8, 2020 Industrial sector focus. 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. The Dutch company said Monday it’s in “constructive discussions” regarding a merger of equals with Axalta Coating Systems Ltd. to create a leading … The company's main focus is on the automotive market, supplying both the original equipment manufacturer (OEM) and refinish markets. PPG Industries has completed the separation and merger of its commodity chemicals business with a Georgia Gulf subsidiary, giving rise to a new entity called … Akzo Nobel confirms merger talks with Axalta. Akzo Nobel N.V. (AKZA; AKZOY) AkzoNobel and Axalta ended their discussions without agreement. 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. “Bringing together our corporate, business, and technology teams will foster increased collaboration, accelerate innovation and enhance operational efficiency,” Bryant noted. Here's a quick summation of the sales trends in the third quarter so you can see how Axalta generates revenue. Exclusive - Akzo Nobel approaches Axalta about possible merger - sources Surge in Covid-19 cases continues, with three new deaths reported. The organizational realignment will be effectiveJanuary 1, 2021, and thePhiladelphia office shifts will occur in mid-2021. He gets to have a huge influence on whether the company is sold and at what price, but you do not. 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. 0. Nine days prior, Axalta announced it’d ended “merger of equals” talks with Dutch paint firm AkzoNobel — which itself had that summer shot down purchase … 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. Follow me on Twitter to receive quick and thorough analysis of your favorite stocks. 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 … Paint giant Akzo Nobel was in merger talks with Axalta in 2017, but discussions ended with no detail. 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. Engineer, investment manager and property developer. Based on his superlative track record, following Warren Buffett into a stock can hardly be described as a bad idea. Breaking News - Our International Buyers Guide contains information on chemicals and equipment suppliers for the paint and coatings industry. 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. Axalta is one of the smaller players in the global coatings sector. Those moves included moving the headquarters in Philadelphia and opening an R&D center at the Navy Yard. Market data powered by FactSet and Web Financial Group. 8bil-€ Chemicals Divisions, valued at 10bil. Axalta to vacate Philadelphia headquarters in restructuring move, Fire causes $250,000 damage at Delmar auto repair shop, Frontier Airlines confirms February start for nonstop service to Orlando, From WHYY: DelDOT preps public for I-95 Wilmington overhaul, Jury trials postponed due to surge in coronavirus cases, PNC to gain nationwide footprint with $11.6 billion deal for BBVA USA Bankshares, Croda gets violation notice after emissions are detected during test of idled ethylene oxide plant. Posts labeled Special to Delaware Business Now are typically submitted items that are updated and sometimes rewritten in news style. The new company would trail the Sherwin-Williams/Valspar combination and PPG globally. 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? Background information is sometimes added. You are effectively trading against people who might be much more informed than you about a key corporate matter such as a takeover bid. For Akzo Nobel, the breakdown in the talks with Axalta mark the end of a difficult year in which it rejected a 26 billion euro (£23.07 billion) takeover offer from PPG Industries Inc (N: PPG ), in favour of a standalone plan. Dulux owner AkzoNobel has confirmed it is in talks over a potential merger with US firm Axalta, just months after rejecting a multibillion-pound takeover bid by US rival PPG Industries. A merger would have created a worldwide rival to PPG. 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 … The transaction is expected to close in the first quarter 2020, subject to customary closing conditions. Transportation coatings -- commercial vehicle. -. 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. Reuters reported last Friday that Akzo had approached Axalta about a possible merger, sending Axalta’s shares 17% higher. It also includes listings for associations and consultants, with detailed contact information for all companies. Another key point to note is that Axalta's management is currently reviewing "strategic alternatives." 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. Axalta operates in an integral part of the economy and, at some point, light vehicle production will surely stabilize and start to grow again while the automotive refinish market has solid growth prospects. 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." Axalta Coating Systems Ltd., the car-paint maker exploring a sale, has drawn preliminary interest from rival companies, according to people familiar with … November 17, 2020. I write about electrical equipment, transportation, and multi-industry industrial stocks. I'm a firm believer that there is something noble about the industrial sector. Finding an under-the-radar Buffett stock is a beautiful idea, but in this case, it probably doesn't make a whole lot of sense to follow the leader. CDR in talks to partner with PPG (PPG) for Axalta (AXTA) bid - Reuters. In other words, Buffett is in a position to guide what happens with the stock, particularly with regard to a takeover, but you are not. I'll come back to this point in a moment. Here's why. Second, you are not Warren Buffett! This realignment follows the restructuring program announced over the summer, and, together, the two initiatives are part of the company’s ongoing program to increase organizational effectiveness and enable growth.”. Plus, a merger with Axalta would also help Akzo Nobel to shut the door on future offers by PPG. The company has also been viewed as a merger candidate. 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. The former DuPont paint and coatings business is downsizing its operations and closing its Center City Philadelphia headquarters. Aligning our organization more directly with our businesses will enable us to focus on our customers and better support our growth objectives in each of our markets.”. Axalta will close itsCenter City Philadelphia offices. Other leading players in the market include PPG Industries (NYSE:PPG), Sherwin-Williams (NYSE:SHW), and Akzo Nobel (OTC:AKZOY). AkzoNobel and Axalta End Merger Discussions. However, not all investments are created equal, and there's a case for private investors to ignore one of Berkshire Hathaway's (NYSE:BRK-B) (NYSE:BRK-A) lesser-known holdings, namely Axalta Coating Systems (NYSE:AXTA). 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. November 21, 2017. Delaware Business Now. 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. Returns as of 12/26/2020. Dulux owner AkzoNobel has confirmed it is in talks over a potential merger with US firm Axalta, just months after rejecting a multibillion-pound takeover bid by US rival PPG Industries. Election 2020 and the Future of Entrepreneurship + Innovation in Delaware, Delaware State Chamber Virtual Annual Dinner, Carney campaign sends cease and desist over pardon ad from PAC, The eyes of the world were on Wilmington’s Riverfront, Biden, Carney, Coons, Rochester cruise to easy victories in Delaware, Lines get shorter after early voting surge in Delaware. Axalta announced a restructuring program. All told, I think the answer is no, at least it's a no right now. Organization with its two global business segments to drive improved performance in a moment has included cuts... The Sherwin-Williams/Valspar combination and PPG globally the transaction is expected to close the. And Buffett behind the stock, what is there not to like about it,! 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