Dulux Owner Rejects $6.4 Billion Offer, Prioritizes Merger with Axalta

Akzo Nobel, the owner of the Dulux brand, has rejected a £6.4 billion ($7.7 billion) bid from Japanese rival Nippon Paint, asserting that the offer "significantly undervalues" its decorative paints business. The Dutch company, which acquired the British paint manufacturer in 2008, confirmed it received multiple offers from Nippon Paint.

Instead of pursuing the acquisition, Akzo Nobel is moving forward with its proposed £21 billion ($25.5 billion) merger with U.S. group Axalta. An Akzo Nobel spokesman indicated that the board continues to recommend the Axalta merger to shareholders, citing its "compelling strategic rationale and benefits."

The decision comes amid a broader trend of mergers and acquisitions within the paint industry, driven by rising costs, intense competition, and market uncertainties. Factors such as tariffs on imported goods have also contributed to the challenging economic landscape for paint manufacturers.

This is not the first time Nippon Paint has shown interest in Akzo Nobel. In May, the Japanese company collaborated with U.S. firm Sherwin-Williams in an unsuccessful attempt to bid for Akzo Nobel's entire operations. Akzo Nobel acquired the Dulux brand, known for its advertising featuring the Dulux Dog, when it purchased Imperial Chemical Industries in 2008.