Tikkurila acquisition: PPG outbids Akzo Nobel
Just two weeks after submitting a binding proposal to acquire Tikkurila, Akzo Nobel now announced that it is no longer planning to take over the company. Meanwhile, PPG made a higher offer and already bought over 9 % of Tikkurilas shares.
In a short statement, Akzo Nobel states that following a competing, higher offer for Tikkurila it now will no longer go forward with the planned acquisition. Initially, PPG announced to take over Tikkurila in December 2020. In early January, Akzo Nobel entered the race with a higher offer of EUR 31.25 per share. PPG then recently enhanced its offer to EUR 34 per share. According to a statement by PPG, major stakeholders of Tikkurila, which represent more than 29 % of its shares, have agreed sell their shares to PPG.
Even though Akzo Nobel has lost the race on this deal, the acquisition of Tikkurila has become significantly more expensive for PPG. In its initial offer, the US-based company offered EUR 25.00 per share. In total, PPG states that the acquisition will now have a volume of approximately EUR 1.52 billion.
“Our improved offer reflects further analysis of the potential transaction synergies and the confidence we have in the value that can be realised by joining our two companies,” said Michael McGarry, PPG chairman and chief executive officer.
Thierry Vanlancker, CEO of AkzoNobel, commented: “We have clear priorities and criteria for capital allocation, including investing for growth, paying dividends, conducting acquisitions, and carrying out share buybacks. The intended acquisition of Tikkurila can no longer compete with more attractive opportunities to create superior value for our shareholders and other stakeholders.”
