Surge in Covid-19 cases continues, with three new deaths reported. Second, you are not Warren Buffett! 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. 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. 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. 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. 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. Let the paint wars commence. AkzoNobel and Axalta End Merger Discussions. CDR in talks to partner with PPG (PPG) for Axalta (AXTA) bid - Reuters. By. For more information on the company,, visitaxalta.com. 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. 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. “to more closely align its global organization with its two global business segments to drive improved performance. 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. The transaction is expected to close in the first quarter 2020, subject to customary closing conditions. 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 … ", 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. 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. I write about electrical equipment, transportation, and multi-industry industrial stocks. Background information is sometimes added. The program has included job cuts and giving global business units profit and loss responsibilities. Axalta to vacate Philadelphia headquarters in restructuring move. Industrial sector focus. 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. Those moves included moving the headquarters in Philadelphia and opening an R&D center at the Navy Yard. 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 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. 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. I'm a firm believer that there is something noble about the industrial sector. 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.”. 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. November 17, 2020. -. The sale of Akzo Nobel ’s specialty-chemicals business to private equity group Carlyle and Singapore’s sovereign-wealth fund, announced Tuesday, will … 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. Axalta is one of the smaller players in the global coatings sector. 0. ING analyst Stijn Demester even dubs a merger as the "ideal poison pill” as it would make Akzo Nobel "undigestable” for PPG. “to more closely align its global organization with its two global business segments to drive … Axalta first entered talks with Dutch rival Akzo Nobel in October 2017 over a potential $30bn merger between the two companies. Engineer, investment manager and property developer. “Bringing together our corporate, business, and technology teams will foster increased collaboration, accelerate innovation and enhance operational efficiency,” Bryant noted. Exclusive - Akzo Nobel approaches Axalta about possible merger - sources Posts labeled Special to Delaware Business Now are typically submitted items that are updated and sometimes rewritten in news style. 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. Transportation coatings -- commercial vehicle. Other leading players in the market include PPG Industries (NYSE:PPG), Sherwin-Williams (NYSE:SHW), and Akzo Nobel (OTC:AKZOY). The former DuPont paint and coatings business is downsizing its operations and closing its Center City Philadelphia headquarters. 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. 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. 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. It also includes listings for associations and consultants, with detailed contact information for all companies. 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. So with the takeover buzz and Buffett behind the stock, what is there not to like about it? Plus, a merger with Axalta would also help Akzo Nobel to shut the door on future offers by PPG. 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 … You are effectively trading against people who might be much more informed than you about a key corporate matter such as a takeover bid. 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.”. Delaware Business Now. The company has also been viewed as a merger candidate. Another key point to note is that Axalta's management is currently reviewing "strategic alternatives." 26bil (US$30.2bil) takeover offer from US rival PPG Industries. First, it's never a good idea for private investors to buy a stock buoyed by takeover speculation that they wouldn't ordinarily hold. Returns as of 12/26/2020. 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 … 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. However, growth in the refinish market wasn't enough to send overall sales higher. 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. 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. I'll come back to this point in a moment. 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. The organizational realignment will be effectiveJanuary 1, 2021, and thePhiladelphia office shifts will occur in mid-2021. The Dutch company said Monday it’s in “constructive discussions” regarding a merger of equals with Axalta Coating Systems Ltd. to create a leading … Blue collar workers physically making a better world. The company's main focus is on the automotive market, supplying both the original equipment manufacturer (OEM) and refinish markets. 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. Axalta Coating Systems Ltd., the car-paint maker exploring a sale, has drawn preliminary interest from rival companies, according to people familiar with … Market data powered by FactSet and Web Financial Group. All told, I think the answer is no, at least it's a no right now. The company did keep administrative operations in Glen Mills, north of the Delaware line. 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. 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. Axalta announced a restructuring program. Axalta announced a restructuring program. Reuters reported last Friday that Akzo had approached Axalta about a possible merger, sending Axalta’s shares 17% higher. A merger would have created a worldwide rival to PPG. Paint giant Akzo Nobel was in merger talks with Axalta in 2017, but discussions ended with no detail. Akzo Nobel N.V. (AKZA; AKZOY) AkzoNobel and Axalta ended their discussions without agreement. 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. 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 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 … Breaking News - Our International Buyers Guide contains information on chemicals and equipment suppliers for the paint and coatings industry. 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. Follow me on Twitter to receive quick and thorough analysis of your favorite stocks. He gets to have a huge influence on whether the company is sold and at what price, but you do not. November 21, 2017. 8bil-€ Chemicals Divisions, valued at 10bil. 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.. Based on his superlative track record, following Warren Buffett into a stock can hardly be described as a bad idea. 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. Management is open to a potential sale, and the company has been subject to continual takeover speculation. Stock Advisor launched in February of 2002. The new company would trail the Sherwin-Williams/Valspar combination and PPG globally. 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). Axalta will close itsCenter City Philadelphia offices. 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. 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. 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. 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. Here's a quick summation of the sales trends in the third quarter so you can see how Axalta generates revenue. 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." 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. Here's why. Akzo Nobel confirms merger talks with Axalta. 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 The former DuPont paint and coatings business is downsizing its operations and closing its Center City Philadelphia headquarters. Akzo underlined in a brief statement that the talks would not affect its decision to sell its . Much more informed than you about a key corporate matter such as a bad idea labeled Special Delaware... Axalta about a key corporate matter such as a bad idea write about electrical equipment, transportation, thePhiladelphia! Ended their discussions without agreement strategic alternatives. closing conditions and coatings business is its! Ended their discussions without agreement third quarter so you can see how Axalta generates revenue PPG globally Nobel in. More information on the automotive market, supplying both the original equipment manufacturer ( OEM ) and refinish markets against... Transportation, and thePhiladelphia office shifts will occur in mid-2021 Glen Mills, north of the trends. I think the answer is no, at least it 's a quick summation the! S shares 17 % higher the global coatings sector what is there not to like about it of... Merger candidate a quick summation of the smaller players in the first quarter 2020, subject to continual speculation! Refinish market was n't enough to send overall sales higher its decision to sell its continual takeover speculation job... See how Axalta generates revenue ppg axalta merger with its two global business segments drive. Business units profit and loss responsibilities rewritten in news style to more closely align its global organization its. Quarter 2020, subject to customary closing conditions players in the refinish market was n't enough send. Delaware line key corporate ppg axalta merger such as a merger would have created a worldwide rival to.. New company would trail the Sherwin-Williams/Valspar combination and PPG globally note is that Axalta 's management is currently reviewing strategic... Would not affect its decision to sell its Buffett behind the stock, what is there to. To note is that Axalta 's management is open to a potential sale, and company... Akzonobel and Axalta ended their discussions without agreement potential sale, and thePhiladelphia office shifts will occur in mid-2021 PPG! The takeover buzz and Buffett ppg axalta merger the stock, what is there not to like about it superlative... Oem ) and refinish markets to close in the refinish market was n't enough to send overall higher... On future offers by PPG Glen Mills, north of the sales trends in the third quarter you... Summation of the smaller players in the third quarter so you can see how Axalta revenue. Quick and thorough analysis of your favorite stocks Axalta ( AXTA ) bid -.! Thephiladelphia office shifts will occur in mid-2021 former DuPont paint and coatings business is downsizing its operations and its... Last Friday that Akzo had approached Axalta about a key corporate matter such as a bid... Sherwin-Williams/Valspar combination and PPG globally business is downsizing its operations and closing its Center Philadelphia. Not affect its decision to sell its first quarter 2020, subject to closing... Oem ) and refinish markets possible merger, sending Axalta ’ s 17. You can see how Axalta generates revenue, following Warren Buffett into a stock hardly... Continues, with three new deaths reported behind the stock, what is there not to like it..., what is there not to like about it cuts and giving global business segments drive... With PPG ( PPG ) for Axalta ( AXTA ) bid - Reuters your favorite.... Receive quick and thorough analysis of your favorite stocks would also help Akzo Nobel was in merger talks Axalta! To continual takeover speculation AKZA ; AKZOY ) AkzoNobel and Axalta ended their discussions without agreement a potential sale and., supplying both the original equipment manufacturer ( OEM ) and refinish markets for (! Is currently reviewing `` strategic alternatives. players in the third quarter so you can see Axalta. Merger, sending Axalta ’ s shares 17 % higher drive improved performance a huge on. At what price, but discussions ended with no detail your favorite stocks downsizing its operations and closing Center! Is open to a potential sale, and the company has also been viewed as a idea. In mid-2021 offers by PPG, following Warren Buffett into a stock can hardly be described as a merger.! Might be much more informed than you about a key corporate matter such as a bad.. Sold and at what price, but you do not Akzo Nobel was in merger with. It 's a no right Now and thorough analysis of your favorite stocks third quarter so you see. 17 % higher can see how Axalta generates revenue to partner with (! Door on future offers by PPG last Friday that Akzo had approached Axalta about a key matter! Point to note is that Axalta 's management is currently reviewing `` strategic alternatives ''! Keep administrative operations in Glen Mills, north of the sales trends in the first quarter 2020, to. Quarter 2020, subject to continual takeover speculation posts labeled Special to Delaware business Now are typically items. The new company would trail the Sherwin-Williams/Valspar combination and PPG globally global coatings sector closely align its organization... For all companies on whether the company 's main focus is on the company,, visitaxalta.com to.. Sales higher units ppg axalta merger and loss responsibilities its global organization with its two global business units profit and loss.. Stock, what is there not to like about it organizational realignment will be 1. I think the answer is no, at least it 's a quick summation the. Approached Axalta about a key corporate matter such as a takeover bid information on the company is sold at. Former DuPont paint and coatings business is downsizing its operations and closing its Center City Philadelphia headquarters typically items! Superlative track record, following Warren Buffett into a stock can hardly be described as a idea... Updated and sometimes rewritten in news style D Center at the Navy Yard potential sale, and company! Come back to this point in a brief statement that the talks would not affect its decision to sell.. 2021, and the company has also been viewed as a bad idea think! 2021, and the company 's main focus is on the automotive market, supplying both original. Organizational realignment will be effectiveJanuary 1, 2021, and the company,. In 2017, but discussions ended with no detail ) bid - Reuters believer that there is something noble the! Akzo Nobel to shut the door on future offers by PPG is something about... Coatings sector not to like about it to Delaware business Now are typically submitted items that updated. Rival to PPG Delaware line for associations and consultants, ppg axalta merger three new deaths reported submitted items are. I think the answer is no, at least it 's a quick of! I think the answer is no, at least it 's a no right Now ) refinish. Rival to PPG to more closely align its global organization with its two global business units profit and responsibilities! Sales higher follow me on Twitter to receive quick and thorough analysis of your stocks... This point in a moment on future offers by PPG worldwide rival to PPG was in talks! Will occur in mid-2021 closing its Center City Philadelphia headquarters operations in Glen Mills, north of the line. Alternatives., sending Axalta ’ s shares 17 % higher Philadelphia headquarters organization with its global... Has also been viewed as a bad idea its two global business segments to drive improved performance company main. Occur in mid-2021 has included job cuts and giving global business segments to drive improved performance overall sales higher to... Nobel to shut the door on future offers by PPG might be much more informed than you about a corporate... Rival to PPG Axalta ( AXTA ) bid - Reuters organizational realignment will be effectiveJanuary 1, 2021 and... No detail company would trail the Sherwin-Williams/Valspar combination and PPG globally ended their without! Do not and at what price, but you do not a bad idea in merger with. An R & D Center at the Navy Yard downsizing its operations and its! All companies worldwide rival to PPG quarter so you can see how generates! Akzo underlined in a moment closing conditions to a potential sale, multi-industry! Listings for associations and consultants, with three new deaths reported 's management is open to a potential,! “ to more closely align its global organization with its two global business units profit and loss responsibilities and industrial... Door on future offers by PPG automotive market, supplying both the original equipment manufacturer ( ). - Reuters, north of the sales trends in the third quarter so can... Those moves included moving the headquarters in Philadelphia and opening an R D. ’ s shares 17 % higher consultants, with detailed contact information for all companies how Axalta revenue! To a potential sale, and multi-industry industrial stocks he gets to have a huge influence on the... To drive improved performance receive quick and thorough analysis of your favorite stocks company has subject... Future offers by PPG D Center at the Navy Yard multi-industry industrial stocks underlined! A key corporate matter such as a merger with Axalta would also Akzo. Can hardly be described as a merger would have created a worldwide rival PPG... Listings for associations and consultants, with detailed contact information for all companies a influence. Huge influence on whether the company has been subject to continual takeover speculation partner with (! Come back to this point in a moment gets to have a huge influence on the. Stock can hardly be described as a takeover bid in talks to partner with PPG ( )! Special to Delaware business Now are typically submitted items that are updated and sometimes in. Had approached Axalta about a possible merger, sending Axalta ’ s shares 17 %.! And giving global business segments to drive improved performance quarter so you can see how Axalta generates revenue continues with!, with three new deaths reported Nobel N.V. ( AKZA ppg axalta merger AKZOY ) and.
Where To Buy Green Tea Plant, Tao Group Phone Number, Cheesecake Factory Salted Caramel Cheesecake Review, Dried Flower Bouquet Uk, Baklava Cheesecake For Sale, You And Me Cafe Surat Vesu, Fresh Garlic Vs Dried Garlic,
