Nippon Paint Shares Jump Most in 24 Years on $2.3 Billion Deal

Shares of Nippon Paint Holdings Co. surged following its announcement of a deal to acquire a US-based chemicals formulator.

The stock price for the Japanese firm gained as much as 23.6% Tuesday, the most since February 2000. The company said it will acquire Tennessee-based AOC from Lone Star Fund for $2.3 billion on Monday.

“We are positive on this news given the large EPS contribution and high profitability,” wrote SMBC Nikko Securities Inc. analysts Yasuhiro Shintani and Go Miyamoto in a note on Monday. “We think this deal will contribute to regional diversification as well as EPS growth.”

Nippon Paint ...