Sherwin-Williams, Denied Mexican Acquisition, May Refile
November 4, 2013 | 12:56 pm CST
Sherwin-Williams, Denied Mexican Acquisition, May Refile

Sherwin-Williams, Denied Mexican Acquisition, May RefileCLEVELAND, OH - Sherwin-Williams said it will consider refiling its petition to acquire Consorcio Comex after Mexico's antitrust watchdog denied its appeal to purchase the paint manufacturer.

Sherwin-Williams said it will meet this week with the chairman and commissioners of the Federal Economic Competition Commission of Mexico, known as Cofeco, to determine if it will re-file and what remedies will be required for approval. Christopher Connor, Sherwin-Williams chairman and CEO, said the commission has expressed concerns over the combined companies' market share and potential detrimental effects to competition.

Sherwin-Williams initially sought to acquire Consorcio Comex, S.A. de C.V. in November 2012 for $2.34 billion in cash. In July 2013, Cofeco refused to authorize the acquisition. Sherwin-Williams' appeal of the ruling was denied October 29.

Connor said the global finishing materials firm has been "disappointed," "frustrated" and "confused" regarding Cofeco's refusal.

The refusal pertains to Comex's Mexican holdings. Earlier this year, Sherwin-Williams acquired the company's U.S. and Canadian businesses for approximately $90 million in cash and $75 million in assumed liabilities. These include eight manufacturing sites, 314 company-operated stores, and approximately 1,500 external Canadian retail locations. Founded in 1952 and privately held, Comex has operations in North America and Latin America and is among the largest paint store companies in the western hemisphere.

Sherwin-Williams said it is seeking to strengthen its architectural coatings business in the Americas. The company said it will also continue to look at other options in Latin America for growth opportunities.

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