According to the Wall Street Journal – citing a person familiar with the matter –there was a failure to reach an agreement on terms around structuring the deal and other issues.
The companies were unable to reach mutually agreeable terms, Axalta confirmed in a press release.
“After pursuing a potential combination of Axalta and Akzo, we concluded we could not negotiate a transaction on terms that meet our criteria,” said Axalta Chairman and CEO Charles W. Shaver. “Any transaction we ultimately agree to needs to generate superior long-term value for Axalta shareholders as compared to the continued execution of our strategic plan.”
"I am confident that our strategy offers significant value for shareholders and other stakeholders in the short, medium and long term," said AkzoNobel CEO Thierry Vanlancker. "We remain focused on our strategic options to continue to develop our business and improve profitability in the future."
AkzoNobel said it continues to focus on its strategy of accelerating sustainable growth and profitability through the creation of two focused, high-performing businesses and remains committed to its 2020 financial guidance (15% ROS and >25% ROI).
The separation of the AkzoNobel Specialty Chemicals business and return of the vast majority of the net proceeds to shareholders remain on track, per AkzoNobel.
Akzo and Axalta’s tie-up would have been a merger of equals and Akzo’s spinoff of the specialty chemicals business was a condition of the deal, the WSJ reported.