Once again the Federal Competition Commission of Mexico has rejected paint-maker Sherwin-Williams' (NYSE:SHW) attempt to buy Consorcio Comex, its paint-making counterpart south of the border.
In a statement released by Sherwin-Williams this morning, the company said it was told last night the commission denied its appeal of the original rejection made this past July, leaving it to consider what options it can take next. One such option would be to refile an appeal with the commission.
The operations of Mexico-based Comex is akin to those of Sherwin-Williams in the U.S., with an installed base of 3,300 stores. The commission's concern has been the impact it would have on competition in the country as well as on smaller, independent paint dealers.
Sherwin-Williams was able to acquire Comex's U.S. and Canadian operations, but they are a far smaller business consisting of 234 stores in the U.S. and 80 stores in Canada along with a handful of manufacturing plants. The U.S.-based paint-maker paid $90 million in cash and assumed Comex's liabilities, which were valued at about $75 million. That's a far cry from the $2.34 billion it would have paid for the Mexican business.
Sherwin-Williams will hold a conference call on Friday, Nov. 1 to discuss the ruling.
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