Akzo Nobel confirms merger discussions with Axalta

Dulux maker Akzo Nobel confirmed on Monday that it is currently in “constructive discussions” about a merger of its paints and coatings business with US rival Axalta Coating Sytems.

In addition, it said the separation of Specialty Chemicals, including the return of the vast majority of net proceeds to shareholders, remains on track for April next year and is unaffected by these discussions.

The statement followed a report by Reuters on Friday suggesting that the companies were in talks, which sent Axalta’s shares flying.

Axalta said in a statement that it will pursue such a transaction only if its board of directors determines that it is in the best interest to do so.

"There can be no assurances that a definitive agreement between the parties will be reached or on what terms," it added.

At 0810 BST, Akzo shares were up 1.1% to €76.37.