Buyout firm CD&R to team up with PPG to bid for Buffet-backed Axalta


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Buyout firm CD&R to team up with PPG to bid for Buffet-backed Axalta

NY-based private equity company, Clayton, Dubilier & Rice, dubbed CD&R in short, had been in an advanced stage talk to partner up with US-based paint maker PPG Industries Inc., in a bid to make an acquisition offer for a US coating company, Axalta Coating System, largest stakeholder of which happened to be Warren Buffet-owned Berkshire Hathaway Inc., at least three people familiar with the subject-matter had revealed later on Monday, the 16th of September 2019, On top of that, the acquisition bid came forth three months after Axalta had announced that it had been contemplating an entire sell-off of its stakes.

In point of fact, latest PPG move in effect would allow the US painting company to rub out some of regulatory obstacles which had been barring it from acquiring Axalta, while PPG had long been on the lookout for a potential opportunity to buy the entirety of Axalta, the only US business it deemed complementary to take over.

As of now, buyout firm CD&R alongside PPG had been discussing about forming a joint bid for Axalta alongside other investors including Singapore-based state-controlled wealth fund GIC and US-based asset manager BlackRock Inc., world’s largest asset manager with $6.84 trillion under its management as of June 2019, one of the sources said on condition of anonymity as the source was not authorized to speak about the issue on public.