Dulux owner Akzo Nobel plummets 19% after takeover talks fall through

Shortly after the opening bell, the pan-European Stoxx 600 index was seen down 0.23%, with sectors and regional bourses painting a mixed picture. The U.K’s FTSE 100 opened slightly below the flatline, while France’s Cac 40 lost 0.3% and Germany’s Dax fell 0.8%.

Shares in Akzo Nobel fell 19% as a proposed takeover of the Dulux paint owner by Nippon Paint and Sherwin-Williams fell through.

Akzo Nobel, whose brands include Dulux, had previously rejected a joint cash takeover offer worth 73 euros ($85) per share.

AkzoNobel said the offer “did not come close” to adequately reflecting its value and long-term prospects, adding that the plan offered “insufficient deal certainty” over the separation of the business, with its shareholders “not adequately safeguarded.”

In other corporate news, Zara owner Inditex updated investors on its fiscal first-quarter earnings on Wednesday.

“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” said U.S. Trade Representative Jamieson Greer.

Investors are also continuing to monitor developments in the U.S.-Iran war after tensions escalated overnight, with Washington accusing Tehran of launching fresh attacks despite a ceasefire remaining in place.

Sales at the Spanish retail group grew 5.8% from the previous year, coming in at 8.7 billion euros ($10.1 billion) to meet analysts’ expectations. Net profit jumped 5.4% year-on-year to reach 1.38 billion euros, in line with estimates.  

Economic data due today includes a Spanish PMI print, Russian unemployment and business confidence figures, and Austrian GDP data.

— CNBC’s Anniek Bao contributed to this report.