Dulux owner Akzo Nobel plummets 19% after takeover talks fall through

Shortly after the opening bell, the pan-European Stoxx 600 index was seen down 0.23%, with sectors and regional bourses painting a mixed picture. The U.K’s FTSE 100 opened slightly below the flatline, while France’s Cac 40 lost 0.3% and Germany’s Dax fell 0.8%.

Akzo Nobel was last trading down 18% after a proposed takeover of the Dulux paint owner by Nippon Paint and Sherwin-Williams fell through.

Akzo Nobel, whose brands include Dulux, had previously rejected a joint cash takeover offer worth 73 euros ($85) per share.

AkzoNobel said at the time that the offer “did not come close” to adequately reflecting its value and long-term prospects, adding that the plan offered “insufficient deal certainty” over the separation of the business, with its shareholders “not adequately safeguarded.”

On Wednesday, the company took note of a statement from Nippon Paint and Sherwin-Williams confirming that they were no longer interested in pursuing a public offer.

In other corporate news, Zara owner Inditex updated investors on its fiscal first-quarter earnings on Wednesday.

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” said U.S. Trade Representative Jamieson Greer.

Investors are also continuing to monitor developments in the U.S.-Iran war after tensions escalated overnight, with Washington accusing Tehran of launching fresh attacks despite a ceasefire remaining in place.

Sales at the Spanish retail group grew 5.8% from the previous year, coming in at 8.7 billion euros ($10.1 billion) to meet analysts’ expectations. Net profit jumped 5.4% year-on-year to reach 1.38 billion euros, in line with estimates.  

Economic data due today includes a Spanish PMI print, Russian unemployment and business confidence figures, and Austrian GDP data.

— CNBC’s Anniek Bao contributed to this report.