March 12 (Bloomberg) -- Nippon Paint Co. dropped by the most in two years in Tokyo trading after saying a Wuthelam Group unit withdrew a takeover bid valued at $751 million.
Wuthelem’s Nipsea International Ltd. unit has abandoned the unsolicited 900 yen a share offer and will begin new talks with Nippon Paint on possible ventures in Asia, the Osaka-based paintmaker said today in a statement. Nippon Paint fell 5.7 percent, the biggest decline since March 14, 2011, to 852 yen at the close of trading in Tokyo.
Nipsea in January offered to pay 72 billion yen ($751 million) for a 30 percent stake in the paintmaker, which already counted Singapore-based Wuthelam as its largest shareholder with a 14.5 percent stake. Acquisitions of stakes in Japanese companies announced by overseas firms jumped to $13.9 billion last year, a 37 percent increase since 2011 and the most since 2008 according to data compiled Bloomberg.
Wuthelam formed the Nipsea venture with Nippon Paint more than 50 years ago and the two companies operate ventures in countries including China, Singapore and Malaysia.
Kyodo News reported the bid withdrawal earlier.
To contact the reporter on this story: Amina Mobley in Tokyo at firstname.lastname@example.org