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WASHINGTON (Reuters) - Paint-maker Sherwin-Williams (SHW.N) has won U.S. antitrust approval to buy U.S. rival Valspar Corp VAL.N, the Federal Trade Commission said on Friday.
To gain antitrust approval, the FTC required the companies to sell Valspar’s North America Industrial Wood Coatings Business, which makes stains, sealants and other products used for kitchen cabinets and other goods.
The FTC, which valued the deal at $11.3 billion, said that the asset sale was needed because just three companies currently make the wood stains and sealants. A merger of two of them, Sherwin-Williams and Valspar, could lead to higher prices for the products.
Sherwin-Williams said in March 2016 that it would acquire Valspar in an all-cash deal.
Valspar's wood stains and sealants will be sold to Axalta Coating Systems Ltd (AXTA.N), which will acquire Valspar plants in North Carolina and Ontario, the FTC said. Axalta currently makes coatings for car and truck makers.
Sherwin-Williams manufactures products under the brands Sherwin-Williams, Duron, Dutch Boy, Krylon, Minwax and Thompson's Water Seal, among others. Valspar makes coatings for the construction, industrial and transportation markets as well as selling consumer paints under the Valspar, Cabot Stain, Devine Color and other brands.
Sherwin-Williams and Valspar did not immediately respond to a request for comment.
Reporting by Diane Bartz; Editing by Bernard Orr and Cynthia Osterman