European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The interloper process is over. With Nippon Paint and Sherwin-Williams gone, the market has reverted to pricing Akzo through the economics and completion probability of the Axalta merger.</li>
<li>Axalta's discount to adjusted deal value narrowed from 30.4% to 3.7%, indicating investors again view merger completion as the base case.</li>
<li>Completion appears likely, but risk/reward has deteriorated. Investors are risking roughly 13% downside to capture 3.7% upside, implying a 3.5x downside/upside ratio and limited valuation upside.</li>
</ul>


The interloper process is over. With Nippon Paint and Sherwin-Williams gone, the market has reverted to pricing Akzo through the economics and completion probability of the Axalta merger.
Axalta's discount to adjusted deal value narrowed from 30.4% to 3.7%, indicating investors again view merger completion as the base case.
Completion appears likely, but risk/reward has deteriorated. Investors are risking roughly 13% downside to capture 3.7% upside, implying a 3.5x downside/upside ratio and limited valuation upside.


The Paint Has Dried on Nippon: Reassessing the Axalta Merger Spread

Independent Investment Research, The IDEA!

The IDEA!

Independent Investment Research

The Idea-Driven Equities Analyses company (the IDEA!) is an employee-owned boutique providing independent investment research and financial consultancy services with a clear focus on the Benelux countries. The company was founded in the summer of 2007 by Henk Slotboom and Maarten Verbeek, both with more than 35 years of professional experience in the financial sector. The IDEA! differentiates itself by focusing on adding value through self-initiated in-depth, idea-driven investment research, as well as by bespoke research assignments for institutional investors, hedge funds and private equity. In addition, we provide market intelligence, strategic research and – together with our business partners – consultancy services to businesses. In case you are interested in receiving more information, a sample of our products or an introductory meeting, please send a message to info@theidea.nl.

Equity Bottom-Up

Universal Music Group NV / Equity Bottom-Up

<ul><li>In this edition: • AkzoNobel | Nippon Paint and Sherwin-Williams no longer pursue joint takeover plan • Universal Music Group | Pershing Square plans to divest its stake • Unilever | Fernández robustly defends the deal with McCormick despite upheaval • Dutch housing market | ‘code yellow’ based on early signals TU’s housing market monitor • E-commerce & Logistics | DHL study shows rising share of OOH deliveries</li></ul>

In this edition: • AkzoNobel | Nippon Paint and Sherwin-Williams no longer pursue joint takeover plan • Universal Music Group | Pershing Square plans to divest its stake • Unilever | Fernández robustly defends the deal with McCormick despite upheaval • Dutch housing market | ‘code yellow’ based on early signals TU’s housing market monitor • E-commerce & Logistics | DHL study shows rising share of OOH deliveries

Universal Music Group NV - What's News in Amsterdam

Axalta Coating Systems / Equity Bottom-Up

<ul><li>AkzoNobel: Evaluating Strategic Options in a Consolidating Industry AkzoNobel’s boards have unanimously rejected a conditional cash proposal from Nippon Paint Holdings.</li><li>At the same time, management continues to recommend the proposed merger of equals with Axalta, citing stronger long-term industrial benefits.</li><li> The situation reflects broader consolidation themes in the global coatings sector, with additional interest from Sherwin-Williams in select businesses forming part of the backdrop.</li></ul>

AkzoNobel: Evaluating Strategic Options in a Consolidating Industry AkzoNobel’s boards have unanimously rejected a conditional cash proposal from Nippon Paint Holdings.At the same time, management continues to recommend the proposed merger of equals with Axalta, citing stronger long-term industrial benefits. The situation reflects broader consolidation themes in the global coatings sector, with additional interest from Sherwin-Williams in select businesses forming part of the backdrop.

In-depth report: AkzoNobel | The Axalta deal just lost its gloss

Nippon Paint Holdings Co Ltd - Research Alert: AkzoNobel | The Axalta deal just lost its gloss

<ul><li>In this edition: • AkzoNobel | new remuneration proposals provoke criticism; Axalta rejected offer too • PostNL | FY25 net loss on the USO at EUR 35m is higher than initially expected • PostNL | new tariffs for urgent (D+1) deliveries after migration to D+2 for USO mail • Bnode | agreement on new CLA for bpost • E-commerce & Logistics | EC imposes EUR 200m fine on Temu</li></ul>

In this edition: • AkzoNobel | new remuneration proposals provoke criticism; Axalta rejected offer too • PostNL | FY25 net loss on the USO at EUR 35m is higher than initially expected • PostNL | new tariffs for urgent (D+1) deliveries after migration to D+2 for USO mail • Bnode | agreement on new CLA for bpost • E-commerce & Logistics | EC imposes EUR 200m fine on Temu

AXTA US - What's News in Amsterdam - 29 May (AkzoNobel | PostNL | Bnode | E-commerce & Logistics)

Netherlands

Akzo Nobel N.V. manufactures specialty chemicals. The Company offers decorative paints and coatings, surfactants, polymer, pulp and paper, bleaching and oxidizing, salt-chlorine, and other chemical products. Akzo Nobel serves customers worldwide.

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Akzo Nobel NV (AKZA NA)

The Paint Has Dried on Nippon: Reassessing the Axalta Merger Spread

Nippon Paint and Sherwin-Williams have walked away. With the only alternative transaction gone, we reassess the Akzo–Axalta merger, spread and...

Jesus Rodriguez Aguilar

Universal Music Group NV - What's News in Amsterdam

In this edition: • AkzoNobel | Nippon Paint and Sherwin-Williams no longer pursue joint takeover plan • Universal Music Group | Pershing Square...

The IDEA!

In-depth report: AkzoNobel | The Axalta deal just lost its gloss

AkzoNobel: Evaluating Strategic Options in a Consolidating Industry AkzoNobel’s boards have unanimously rejected a conditional cash proposal from...

The IDEA!

Nippon Paint Holdings Co Ltd - Research Alert: AkzoNobel | The Axalta deal just lost its gloss

AkzoNobel: Evaluating Strategic Options in a Consolidating Industry AkzoNobel’s boards have unanimously rejected a conditional cash proposal from...

The IDEA!

AXTA US - What's News in Amsterdam - 29 May (AkzoNobel | PostNL | Bnode | E-commerce & Logistics)

In this edition: • AkzoNobel | new remuneration proposals provoke criticism; Axalta rejected offer too • PostNL | FY25 net loss on the USO at EUR...

The IDEA!

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