CLEVELAND, OH – The Sherwin-Williams Co. said it is ending its bid to purchase Mexican paint and coatings manufacturer Consorcio Comex S.A. de C.V.
Sherwin-Williams initially sought to acquire Comex in November 2012 for $2.34 billion in cash. Last year the antitrust regulator Federal Economic Competition Commission of Mexico, known as Cofeco, refused to authorize the acquisition.
Sherwin-Williams (NYSE: SHW) said it notified Comex owners on April 3 that it was terminating the purchase agreement. Under the amended terms of the stock purchase agreement, either company could terminate the deal if the acquisition did not close by March 31, 2014.
On April 3 Sherwin-Williams also filed for a declatory judgment in New York Supreme Court that it had "used commercially reasonable efforts as required under the stock purchase agreement," thus disputing an April 1 breach of contract claim made by Comex ownership.
Cofeco's refusal and the deal's subsequent termination, pertained to Comex's Mexican holdings. Last year Sherwin-Williams acquired Comex's U.S. and Canadian businesses for approximately $90 million in cash and $75 million in assumed liabilities. Included were eight manufacturing sites, 314 company-operated stores, and approximately 1,500 external Canadian retail locations.
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