24th January 2019

AKZO NOBEL CONFIRMS BASF TALKS

Other than admitting that there are discussions, AkzoNobel is saying nothing about plans to buy the Industrial Coatings business of BASF. A short statement on the potential purchaser's website states: "The strategy of AkzoNobel of driving operational excellence and organic growth includes the possibility to pursue value generating, bolt-on acquisitions.
"No further details will be made available at this stage."

AkzoNobel's industrial coatings business had sales of around EU 780-million (US$884-million), or 14 percent of the company's performance coatings sales of EU 5.59-billion in 2014.

BASF is relatively small in industrial coatings. Its main coatings sectors are automotive and consumer. Industrial coatings are lumped under others, which in 2014 had sales of about EU 240-million, or 8 percent of coatings sales of EU 2.98-billion.

BASF's main competitors in industrial coatings are AkzoNobel and PPG. Some European news media are reporting that PPG and other companies might also be bidding for BASF's coatings assets. BASF's industrial coatings are produced at Münster and Oldenburg, Germany, and its product portfolio comprises e-coats, spray and dip coatings.

www.akzonobel.com