Comex suing Sherwin-Williams over botched deal
Mexican paint company Consorcio Comex is reportedly suing Sherwin-Williams over the botched deal it terminated last month, alleging that the company had not demonstrated a sufficient effort to follow through on the terms of the deal.
Sherwin-Williams drafted the stock purchase agreement last September, which stipulated that either party may terminate the deal in the event that the closing of the acquisition did not occur on or prior to March 31, 2014. Mexico's Federal Economic Competition Commission rejected the bid twice, claiming that the acquisition would create monopoly conditions in Mexico's paint market.
Comex is asking the International Chamber of Commerce to arbitrate the dispute, but is not indicating how much it is seeking in damages.
The deal, initially announced in November 2012, came at a price tag of $2.34 billion.