Dulux Owner Rejects $6.4 Billion Bid, Cites Undervaluation

Akzo Nobel, the owner of the Dulux brand, has rejected a £6.4 billion ($8.1 billion USD) acquisition offer from Japanese competitor Nippon Paint, stating the bid significantly undervalues its decorative paints business. The Dutch company confirmed it received multiple offers from Nippon Paint for the unit it has owned since 2008.

Instead of pursuing the acquisition, Akzo Nobel is moving forward with its previously announced £21 billion ($27.3 billion USD) merger with American group Axalta. An Akzo Nobel spokesman indicated the board continues to recommend the Axalta merger to shareholders, citing its "compelling strategic rationale and benefits."

Nippon Paint had previously joined forces with US firm Sherwin-Williams in May to bid for Akzo Nobel's entire company, an interest that Akzo Nobel also fended off. The company acquired the Dulux brand, recognized for its advertising featuring the Dulux Dog, when it purchased Imperial Chemical Industries in 2008.

Paint manufacturers are increasingly pursuing mergers as a strategy to mitigate rising costs, navigate intense competition, and address economic uncertainty, including impacts from trade tariffs on imported goods.