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3/9/2017 | 1 MINUTE READ

AkzoNobel rejects PPG’s $22 billion bid

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AkzoNobel stated it instead will look to spin off its chemical business.


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AkzoNobel (Amsterdam, Netherlands) has rejected a $22 billion bid from PPG Industries Inc. (Pittsburgh, Pa.) as the company is looking into options for the separation of its specialty chemicals business.

The specialty chemicals business had revenues of €4.8 billion in 2016. According to the company, the “separation will allow the specialty chemicals business to continue to build and accelerate its market-leading positions across a range of market segments.” 

As part of the separation, AkzoNobel will consider various alternative ownership structures for the specialty chemicals business including the establishment of an independent listed entity‎. AkzoNobel stated that “PPG’s proposal substantially undervalues AkzoNobel and is not in the interest of its stakeholders, including its shareholders, customers and employees.”

Whereas PPG stated: “PPG continues to believe there is a strong strategic rationale for the proposed transaction between PPG and AkzoNobel and will carefully evaluate and consider its position and path forward related to its proposal.”

Michael McGarry, chairman and CEO of PPG, said, “PPG has long admired AkzoNobel’s businesses, global presence, culture and principles as well as its advances in innovative product development and sustainable business practices. We believe a combination of our two companies is a very compelling strategic opportunity. We are confident that this combination is in the best interests of the stakeholders of both companies as it presents a unique opportunity to build on the successful legacies of our businesses. PPG has carefully considered the interest of all AkzoNobel stakeholders including shareholders, employees, customers and the communities it serves and has proposed its willingness to enter into serious commitments in respect of all stakeholders.”

Ton Büchner, CEO, AkzoNobel stated:

“The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties. The proposal is not in the interest of AkzoNobel’s stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it. Along with my colleagues on our voards, our executive team and our thousands of employees, I firmly believe that AkzoNobel is best placed to unlock the value within our company ourselves."