Akzo Nobel rejects takeover bid from PPG
Dutch paints and chemicals maker Akzo Nobel NV said Thursday it had rejected a EUR 21 billion offer from U.S. coatings producer PPG as it undervalued the business.
The decision was brought forward following confirmation that Akzo Nobel has rejected an unsolicited, non-binding and conditional proposal from PPG Industries Inc. for all of the issued and outstanding ordinary shares in the capital of Akzo Nobel. PPG’s proposal substantially undervalues Akzo Nobel and is not in the interest of its stakeholders, including its shareholders, customers and employees.
However, the decision leaves room for speculations. The offer was rejected as it undervalued the business. Akzo Nobel did not comment on the question if the company would go into talks if PPG raises the offer.
Akzo Nobel posted sales of EUR 14.2 billion and an operating profit of 1.5 EUR billion in 2016. PPG posted sales of USD 14.5 billion and an operating profit of USD 1.9 billion last year.
Meanwhile Akzo is thinking of alternative measures to keep its shareholders happy.
