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6/19, 4:22 PM (Source: TeleTrader)
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Axalta mulling potential sale of business

Axalta Coating Systems Ltd. is considering several strategic options for its business which could include a potential sale of the company, it announced in a press release on Wednesday.

The Philadelphia-based company, which counts Berkshire Hathaway as its largest shareholder, said that its board of directors initiated a "comprehensive review of strategic alternatives to maximize shareholder value." The board formed a strategic review committee that will comprise among others the company's CEO and various independent directors. The board's chair Mark Garrett stated that the company is examining various possibilities, such as selling the company or changing its capital allocation. No details were provided as to the duration of the review process.

Axalta was previously involved in merger discussions with Akzo Nobel NV in October 2017. However, the deal fell through after Nippon Paint entered the fray with an all-cash bid. The transaction with the latter also failed to result in a deal and both sides ended negotiations in November 2017.

The company's shares were up 13.89% at 4:18 pm CET following the news.

Breaking the News / DZ