Dulux owner AkzoNobel has rebuffed a €7.5bn (£6.5bn) approach from Nippon Paint for its decorative paints division, arguing the offer significantly undervalues the business.
The company confirmed it had received several conditional and non-binding proposals from the Japanese paintmaker for the division, which includes consumer brands such as Dulux.
However, AkzoNobel said its merger agreement with US coatings group Axalta prevented it from entering discussions with Nippon Paint and stressed that its board continued to support the planned tie-up.
The latest approach comes just one month after Nippon Paint and Sherwin-Williams withdrew a joint €12.5bn offer to acquire the whole of AkzoNobel.
That proposal was also rejected, with AkzoNobel arguing it undervalued the company, lacked certainty over regulatory approval and would have divided the business between two buyers.
AkzoNobel is instead pressing ahead with its proposed merger with Axalta, which is expected to generate annual cost savings of about $600m.
The combined group would place greater emphasis on industrial coatings, which AkzoNobel chief executive Greg Poux-Guillaume has previously described as more resilient than decorative paint during periods of weaker consumer spending.
Poux-Guillaume is expected to remain chief executive of the enlarged business following the merger.
AkzoNobel and Axalta shareholders are due to vote on the deal on 5 August.
The renewed takeover interest comes as the global paint industry contends with rising costs, intensifying competition and uncertainty surrounding US tariffs.
Nippon Paint said no decision had been made regarding a possible acquisition. Its shares fell around 2.5 per cent following news of the approach.
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