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Monday, June 30, 2014

U.S. chemicals maker PPG to purchase Mexico's Comex for $2.3 bln, (NYSE: PPG)

U.S. chemicals maker PPG Industries Inc said on Monday it had agreed to purchase paints maker Consorcio Comex SA de CV for $2.3 billion after the Mexican company's deal to sell to U.S. rival Sherwin-Williams Co fell through.PPG Industries, whose shares rose by more than 3.5 percent in early trading, said in a joint statement with Comex that it plans to fund the acquisition primarily with currently held cash and short-term investments. The U.S. company added that it may fund part of the purchase price with debt.Last year Mexico's federal competition authority twice rejected Sherwin-Williams' proposed $2.34 billion takeover offer for Comex, saying it would create unfair market conditions.Comex, a family-owned company founded in 1952, said in May it was suing Sherwin-Williams because it had not tried hard enough to honor the takeover agreement.

PPG Industries, Inc. (PPG) is a global supplier of protective and decorative coatings. Shares of PPG traded higher by 2.87% or $5.85/share to $209.90. In the past year, the shares have traded as low as $144.58 and as high as $205.92. On average, 640527 shares of PPG exchange hands on a given day and today's volume is recorded at 1073410.