Mexico again rejects Sherwin Williams Comex bid

Reuters

MEXICO CITY, Oct 30 (Reuters) - Mexico's competitionauthority said on Wednesday it rejected an appeal by U.S. paintmaker Sherwin Williams over its blocked bid to acquireMexican 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 acompany with around 50 percent of Mexico's paint market thatwould be eight times bigger than its nearest competitor.

Sherwin Williams said in a statement that it is "reviewingthe 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 itwould create unfair market conditions.

Comex is a family-owned company founded in the 1950s. It hasmore 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.

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