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Sherwin-Williams Appeal Over Mexico Deal Rejected

Sherwin-Williams Co. (SHW), the largest U.S. paint retailer, said Mexico’s antitrust regulator rejected its appeal against an earlier ruling that blocked its bid for paint maker Consorcio Comex SA.

Sherwin-Williams is reviewing the Federal Economic Competition Commission of Mexico’s decision and is considering its options, including possibly refiling with the regulator, the Cleveland-based company said today in a statement.

Sherwin-Williams dropped 5.2 percent to $184.25 at 9:02 a.m. before the start of regular trading in New York.

The regulator voted three to two in July to reject Sherwin-Williams’ application, saying the combined company would be able to set artificially high prices. If the takeover proceeded, Sherwin-Williams would have had a market share of 48 percent to 58 percent in Mexico, depending on the product, or as much as 10 times the share of its closest competitor, the regulator said at the time.

To contact the reporter on this story: Simon Casey in New York at scasey4@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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