Paints maker Consorcio Comex SA de CV agreed to be acquired by chemicals maker PPG Industries Inc. for $2.3-billion (U.S.), after the Mexican company’s deal with U.S. rival Sherwin-Williams Co. fell through earlier this year.
PPG’s shares rose 3 per cent 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 offer takeover of Comex twice last year, saying it would create unfair market conditions.
Comex, a family-owned company founded in 1952, said in May that it was suing Sherwin-Williams because it had not tried hard enough to honour the deal.
Privately held Comex has eight manufacturing plants and six distribution centres 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.
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