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PPG Industries, the industrial chemicals group, is exploring a potential deal with Dutch rival Akzo NobelNV, according to people familiar with the matter.
PPG is working with advisers to study a transaction that could involve acquiring all or part of Amsterdam-based Akzo Nobel, which has a market value of about $17 billion, the people said, asking not to be identified as the details aren't public. There is no certainty an agreement will be reached, they said.
PPG shares rose as much as 10 percent in New York to $110.81, the most in eight years, while Akzo Nobel's U.S. traded shares climbed 12 percent.
A spokesman for PPG declined to comment. A representative for Akzo Nobel didn't immediately respond to a request for comment outside regular business hours.
A deal between Pittsburgh-based PPG, with a market valuation of about $25.9 billion, and Akzo Nobel would create a global leader in specialty chemicals. Akzo Nobel is Europe's largest coatings supplier, with a portfolio spanning basic chemicals such as chlorine all the way through to ingredients for skin cream and paint for Formula 1 racing cars.
PPG, which has 156 factories worldwide supplying paints, coatings, specialty materials and fiber glass, acquired Akzo Nobel's North American decorative paint business in 2012 for $1.05 billion.
Both Akzo Nobel and PPG have stayed on the sidelines of recent dealmaking in the paint and chemicals industries. Dow Chemical agreed in 2015 to a $65 billion planned merger with DuPont, while Sherwin-Williams paid $11 billion to buy rival paintmaker Valspar Corp. and Evonik Industries's agreed to the $3.8 billion purchase of a coatings additives business from Air Products & Chemicals Inc.