A long, drawn-out acquisition affair is over, and not with a happy ending for its parties.
After months of regulatory delays, Sherwin-Williams has terminated its bid for Comex Mexico, effective immediately.
Initially dated Sept. 16, 2013, the amended and restated stock purchase agreement was officially terminated by Sherwin-Williams after it sent a notice to the sellers on April 3. The agreement had stipulated that either party may terminate the deal in the event that the closing of the acquisition did not occur on or prior to March 31, 2014.
The company also filed a complaint for a declaratory judgment in the Supreme Court of the State of New York, New York County, requesting the court to affirm it has made commercially reasonable efforts and not breached the agreement. The sellers announced on April 1 that they believed Sherwin-Williams had breached its obligations to use commercially reasonable efforts.
Sherwin-Williams had initially agreed to purchase Consorcio Comex in November 2012, but the Federal Competition Commission of Mexico put a hold on the acquisition in July of last year. In September, Sherwin-Williams announced its acquisition of the paint company pending regulatory approval, but was turned down again in October.