AkzoNobel shares plunged 19% to 53.74 euros after Sherwin-Williams and Nippon Paint abandoned their $14.53 billion all-cash takeover bid, rejecting two offers in favor of a merger with Axalta Coating Systems. The sharp decline, the largest one-day drop in the stock’s history, erased recent gains from the takeover speculation and erased about 9% of its year-to-date value.

The failed bid, valued at 12.49 billion euros, highlighted the difficulty of consolidating the fragmented European coatings market, where regulatory hurdles and strategic disagreements have stalled consolidation. Investors reacted reacted sharply to the collapse of the deal, reflecting concerns over growth prospects and competitive pressure in a fragmented European coatings market.

The failed bid underscores the difficulty of consolidating a fragmented European coatings market and signals continued investor skepticism toward large-scale consolidation attempts without clear synergies.