#paints

𝐖𝐚𝐫 𝐬𝐡𝐮𝐟𝐟𝐥𝐞𝐬 𝐰𝐞𝐚𝐥𝐭𝐡 𝐨𝐰𝐧𝐞𝐫𝐬; 𝐦𝐨𝐧𝐨𝐩𝐨𝐥𝐲 𝐦𝐚𝐤𝐞𝐬 𝐩𝐫𝐨𝐟𝐢𝐭 𝐦𝐨𝐧𝐬𝐭𝐞𝐫𝐬; 𝐰𝐢𝐥𝐥 𝐒𝐡𝐞𝐫𝐰𝐢𝐧‑𝐖𝐢𝐥𝐥𝐢𝐚𝐦𝐬 𝐬𝐰𝐢𝐧𝐠 𝐡𝐚𝐫𝐝 𝐟𝐨𝐫 𝐯𝐞𝐫𝐭𝐢𝐜𝐚𝐥 𝐩𝐫𝐨𝐟𝐢𝐭 𝐨𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧? 𝐈𝐧 𝐚 𝐰𝐨𝐫𝐥𝐝 𝐰𝐡𝐞𝐫𝐞 𝐜𝐨𝐧𝐟𝐥𝐢𝐜𝐭 𝐫𝐞𝐰𝐢𝐫𝐞𝐬 𝐬𝐮𝐩𝐩𝐥𝐲 𝐜𝐡𝐚𝐢𝐧𝐬 𝐚𝐧𝐝 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐩𝐨𝐨𝐥𝐬,… Akzo–Axalta ‘merger of equals’ (only ~$600m synergies = 6% of cost base) has now triggered a Sherwin–Nippon joint bid. Latest offer: ~€12.5bn EV (~€15.4bn incl. debt), a 39% premium vs undisturbed; Akzo stock +25% since approach. Moody’s flags elevated event‑risk: Sherwin would need sizable debt financing, pushing leverage temporarily higher, though strategic fit mirrors its Valspar playbook (9% cuts → ~€6bn PV). Akzo’s US‑listing rerate case implies ~€19bn EV on ~11× comps, but execution risk remains. Board now risks a 2017‑style repeat after rejecting PPG’s 50% premium.

#chemicals #paints #coatings #housing #realestate mergerarb ht:baml/ecl @ennovance

Have been trying my hand at painting