Sherwin-Williams (SHW -1.6%) and Valspar (VAL -1.7%) say their merger is on track to close on schedule by the end of Q1, saying they hope to end “unfounded market rumors” concerning regulatory approvals for the deal.
SHW and VAL say they continue to believe that no or few asset sales will be required to complete the transaction, given what they is the complementary nature of the businesses.
The merger deal includes an unusual clause to cut the $113/share purchase price if antitrust regulators demand aggressive divestitures; SHW could walk away entirely if divestitures climb to $1.5B of revenue.
Sherwin-Williams (NYSE:SHW) Valspar (NYSE:VAL) issue the following statement in response to unfounded market rumors concerning regulatory approvals for the definitive agreement between Sherwin-Williams and Valspar, which was announced on March 20, 2016:
"Sherwin-Williams and Valspar continue to cooperate fully with the FTC staff and continue to expect the transaction will close by the end of Q1 calendar year 2017. Given the complementary nature of the businesses and the benefits this transaction will provide to customers, Sherwin-Williams and Valspar continue to believe that no or minimal divestitures should be required to complete the transaction."
The transaction, which has been approved by Valspar shareholders, is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act and regulatory approvals in various other jurisdictions.