US chemical companies PPG Industries announced Monday it reached a deal to acquire Mexican paint company Comex, a $2.3 billion acquisition that follows a recent failure by US competitor Sherwin-Williams to purchase the Mexican firm.
According to reports, PPG Industries will fund the majority of the transaction through cash and investments, but said it could fund some of it with debt. While the deal remains subject to regulatory clearance, PPG said it is confident the deal will secure approval.
Mexico’s federal competition authority twice rejected Sherwin-Williams’ attempts to acquire Comex after finding the deal would likely lead to an anticompetitive market. Sherwin-Williams had looked to purchase the company for $2.34 billion.
Comex has since signaled that it will sue the US firm on claims it did not make enough effort to fulfill the merger agreement struck between the two.
Full content: Reuters
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