CLEVELAND—The U.S. Federal Trade Commission and Canadian Competition Bureau have green-lighted a major acquisition in the building products industry.
Late last week, the two competition watchdogs granted Sherwin-Williams Co. approval to buy rival paint and coatings firm Valspar Corp.
The companies first announced the US$11.3 billion, all-cash deal in March of last year. It will see dozens of manufacturing plants change hands, including two in Canada.
The FTC and CCB approval came with one condition. The agencies found the transaction would likely lead to decreased competition and price increases for industrial wood coatings, such as varnishes and lacquers. As a result, Sherwin-Williams will be required to sell two coatings plants to complete the deal.
To comply with the regulators, the Ohio-based company will sell Valspar’s Cornwall, Ont. plant as well as its High Point, North Carolina plant to competitor Axalta Coating System Ltd.
The companies expect the deal to close June 1.