AkzoNobel could sell chemicals division, buy Jotun, analysts say
AkzoNobel, the Dutch paints and chemicals company, might eye an acquisition of Norwegian paint manufacturer Jotun, a report in Dutch-language De Telegraaf said. In addition, AkzoNobel could face pressure to sell its chemicals division, unnamed ABN Amro analysts said in the report, detailing Akzo's position in the wake of Sherwin Williams' acquisition of Valspar.
Jotun could be a very suitable candidate for a takeover, in order to counter Sherwin Williams' dominant market position in the paints industry, the item reported, without citing sources for this specific claim. AkzoNobel CEO Tom Buchner heaped praise on Norwegian Jotun (mother company: Orkla) two years ago, the report noted.
AkzoNobel might however come under pressure to divest a chemicals division, the item noted.
AkzoNobel's paper pulp division, a part of the chemical division, is under particular scrutiny for a possible sale, the item added. The division's profitability has been falling behind for years, the ABN Amro analysts say in the item. The same analysts claim the division could be worth up to EUR 5.3bn, which would be less than 6x its expected ebitda of this year, the item noted.
de Telegraaf