Akzo Nobel Rejects €12.5 Billion Offer From Nippon Paint (3)

Akzo Nobel NV has rejected a cash offer from peers Nippon Paint Holdings Co. and Sherwin-Williams Co. that would break up the business, and will press on with plans to merge with US firm Axalta Coating Systems Ltd.

The all-cash offer of €73 ($85) a share is 39% higher than Tuesday’s closing price, and would value the maker of Dulux paints at €12.5 billion. Akzo Nobel jumped as much as 22% in Amsterdam trading, the most on record, to a market valuation of just under €11 billion.

Japan’s Nippon Paint and US competitor Sherwin-Williams made the initial approach last month, ...