Nippon Paint and Sherwin-Williams End Pursuit of Akzo Nobel (2)

Nippon Paint Holdings Co. and Sherwin-Williams Co. ended their effort to buy Akzo Nobel NV, leaving the Dutch paintmaker to proceed with its planned merger with US firm Axalta Coating Systems Ltd.

The decision follows Akzo Nobel’s rejection of two joint all-cash offers put forward by the firms, the companies said in a statement Wednesday. The most recent offer of €73 per share valued the maker of Dulux paints at €12.5 billion ($14.5 billion), and involved plans to break up the business.

Akzo Nobel shares plunged as much as 22%, the largest one-day drop on record, and traded ...