Tags: PPG | Mexico | Comex | Sherwin-Williams

Chemicals Maker PPG Industries to Buy Mexico's Comex for $2.3 Billion

Monday, 30 Jun 2014 10:05 AM

Paints maker Consorcio Comex SA de CV agreed to be acquired by chemicals maker PPG Industries Inc. for $2.3 billion, after the Mexican company's deal with U.S. rival Sherwin-Williams Co. fell through earlier this year.

PPG's shares rose 3 percent after the announcement of the deal, which will help the company expand its paints offering in Mexico and Central America.

Mexico's federal competition watchdog rejected Sherwin-Williams' proposed $2.34 billion takeover of Comex twice last year, saying it would create unfair market conditions.

Comex, a family-owned company founded in 1952, said in May it was suing Sherwin-Williams because it had not tried hard enough to honor the deal.

Privately held Comex has eight manufacturing plants and six distribution centers and had sales of about $1 billion in 2013.

PPG, which had sales of more than $3 billion in 2013, said in January that it was looking to spend $3 billion to $4 billion on acquisitions and share buybacks over 18 to 24 months.

PPG shares closed at $204.05 on Friday on the New York Stock Exchange.

© 2017 Thomson/Reuters. All rights reserved.

 
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Paints maker Consorcio Comex SA de CV agreed to be acquired by chemicals maker PPG Industries Inc. for $2.3 billion, after the Mexican company's deal with U.S. rival Sherwin-Williams Co. fell through earlier this year.
PPG, Mexico, Comex, Sherwin-Williams
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2014-05-30
Monday, 30 Jun 2014 10:05 AM
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