Dutch paints and coatings maker Akzo Nobel, under pressure after rejecting a lucrative takeover offer and then issuing two profit warnings, said it was in merger talks with U. rival Axalta Coating Systems Ltd that could create a $30 billion company.
Akzo, the maker of Dulux paint, announced it was in "constructive talks" following market speculation about a possible deal.
Reuters reported on Friday the companies were in talks, sending Axalta`s shares 17 percent higher.
Akzo has a market capitalization of 19.7 billion), while Axalta is worth $8.1 billion at Friday`s closing price of $33.
Akzo said merging with Axalta, whose truck coatings business fills a hole in its portfolio, would "create a leading global paints and coatings company."
Akzo earlier this year faced lawsuits from shareholders angry over its decision to reject a 26 billion euro takeover offer from U. rival PPG Industries.
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