MEXICO CITY, Oct 30 (Reuters) - Mexico’s competition authority said on Wednesday it rejected an appeal by U.S. paint maker Sherwin Williams over its blocked bid to acquire Mexican paint company Consorcio Comex for $2.34 billion.
The Federal Economic Competition Commission (COFECE) rejected the deal because it said the tie-up would create a company with around 50 percent of Mexico’s paint market that would be eight times bigger than its nearest competitor.
Sherwin Williams said in a statement that it is “reviewing the Commission’s decision and is considering all options, including whether to refile with the Commission.”
Mexico’s watchdog first rejected the deal in July, saying it would create unfair market conditions.
Comex is a family-owned company founded in the 1950s. It has more than 3,000 outlets in Mexico, compared to Sherwin Williams’ 135 stores.
The purchase price for Comex, which generated sales of about $1.4 billion in 2011, includes debt held by the company.