The coatings industry’s biggest merger saga just got even more interesting.

AkzoNobel announced last week that it has rejected a joint cash acquisition proposal from Nippon Paint and Sherwin-Williams, choosing instead to move forward with its planned merger with Axalta.

The Dutch coatings manufacturer said the offer undervalued the company, carried significant regulatory uncertainty, and would have resulted in AkzoNobel being split between the two suitors.

According to AkzoNobel, the proposal called for Nippon Paint to acquire the company and retain its Decorative Paints and Industrial Coatings businesses, while Sherwin-Williams would acquire the Automotive & Specialty Coatings, Marine & Protective Coatings, and Powder Coatings divisions.

The offer was valued at $83 per share, representing roughly a 39% premium over AkzoNobel’s closing share price before news of the bid became public.

In a separate statement, Nippon Paint Group and Sherwin-Williams confirmed the offer. For Nippon Paint, the biggest attraction was the opportunity to bring the Dulux brand back under one roof while expanding its position in architectural coatings. Sherwin-Williams, meanwhile, viewed AkzoNobel’s coatings operations as a way to strengthen its reach in several specialized and higher-end coatings categories.

Instead, AkzoNobel’s board reaffirmed its support for the company’s pending merger with Axalta. That transaction, announced last year, would create a coatings giant with an enterprise value of approximately $25 billion. Sherwin-Williams and Nippon Paint announced Wednesday that they have ended their joint efforts to acquire AkzoNobel.

The combined company is expected to generate about $600 million in annual cost savings and would be led by current AkzoNobel CEO Greg Poux-Guillaume. Shareholder votes are expected in July, with closing targeted for late 2026 or early 2027 pending regulatory approvals.