Wall Street Journal is reporting that PPG has agreed to acquire the North American consumer paints business (usually called "trade sales") from Akzo. Akzo presumably got it with the portion of ICI they acquired. This includes the Glidden brand name, which has a long history (at one time owned by SCM, but makers of Smith Corona typewriters and Durkee dressing).WSJ reports this will make PPG the largest global paint maker, followed by Akzo, and Sherwin Williams. In architectural paints in North America, PPG will be behind Sherwin-Williams, but ahead of Masco Corp, maker of Behr paints.PPG is a major player in industrial paints including paints for the auto industry, especially electrocoated primers, and auto repair paints (called "auto refinish.")SW is still the largest in terms of SW stores: 3500 vs PPG with abt 1000 including 600 from Akzo. PPG has been growing its trade sales business having earlier acquired Olympic Stain, which owned Dupont's Lucite brand.Not mentioned is Valspar, a significant player that tends to market regional brand names (but recently has appeared in Lowe's ads), and Benjamin Moore, a division of Warren Buffett's Berkshire Hathaway.Some sources indicate Akzo is a leading supplier of paint to Walmart.Akzo retains its industrial paints business and its operations in Europe. It plans to use proceeds to reduce debt and invest in higher growth businesses.Some see paint as a way to play the recovering housing market. Both SW and PPG stock has been setting new highs.
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