Sherwin-Williams closes acquisition of Valspar by $ 8.9 billion

New York-the American paints and coatings company Sherwin-Williams confirmed on Sunday agreed to buy competitor Valspar for about $ 8.9 billion. The offer is $ 113 per share, a premium of 35% before the closure of the papers on Friday.
The acquisition should strengthen Sherwin before the competitors PPG Industries and Akzo Nobel. Sherwin has focused mainly on the United States and in Latin America, while the PPG global strategy follows a larger operations in Europe and Asia.
The global market for paints and coatings produce about $ 130 billion in sales a year, according to data from PPG.
The Valspar has market value of $ 6.6 billion, while Sherwin-Williams is valued at $ 26.8 billion. In 2015, Sherwin-Williams has recorded sales of $ 11.3 billion and profit of $ 1.1 billion.
They said companies expect minimal reaction of antitrust authorities, but stressed that, if regulators require that Sherwin-Williams sales companies that have contributed more than $ 650 million for the Valspar recipe in 2015, the price of the deal would have reduced from $ 8 per share.
Sherwin-Williams said she hoped that the agreement has immediate reflection on profit and projected $ 280 million in synergies per year.
The chemical industry has faced a consolidation movement. Last year, companies Dow Chemical and DuPont have signed a merger agreement of about $ 120 billion.