Akzo Nobel rejects third takeover proposal from PPG
Dutch paint maker Akzo Nobel has rejected a third takeover proposal from its U.S. rival PPG Industries, valued at EUR26.9 billion, saying it undervalues the company, faces antitrust risks, and does not address other concerns such as "cultural differences".
“Akzo Nobel has concluded its own strategy, presented on April 19, 2017, offers a superior route to growth and long-term value creation and is in the best interests of shareholders and all other stakeholders”, the company said in a statement.
Considerable in-depth analysis
This decision follows considerable in-depth analysis of PPG's proposal by the Supervisory Board and Management Board of AkzoNobel, working closely with their financial and legal advisors. As part of this process, on May 6, 2017, Ton Büchner, CEO, and Antony Burgmans, Chairman of the Supervisory Board of Akzo Nobel, met with Michael McGarry, Chairman and CEO, and Hugh Grant, Lead Independent Director of PPG.
Own strategy should accelerate growth
In the execution of their fiduciary duties, the absolute focus of the Boards has been to determine whether the proposal by PPG fits with Akzo Nobel's strategic objectives, is in the best interests of the company and creates long-term value for shareholders and all other stakeholders. After extensive consideration, the company has concluded that the interests of shareholders and other stakeholders are best-served by its own strategy to accelerate growth and value creation.
Ton Buchner, Akzo Nobel CEO, said:
“As part of our fiduciary duties we conducted an extensive review of the third proposal from PPG. The proposal undervalues Akzo Nobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding. By contrast, Akzo Nobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders. We will deliver this within a clear timeline, without the substantial level of risks and uncertainties attached to the alternative proposal.
We have a strong track record of delivering on our commitments and are fully focused on accelerating growth momentum and enhanced profitability with the creation of two focused, high-performing businesses – Paints and Coatings and Specialty Chemicals – which will lead to a step change in growth and long-term value creation for shareholders and all other stakeholders.”
