Akzo Nobel reviewing strategic options to separate Specialty Chemicals
Akzo Nobel has announced a review of strategic options for the separation of its Specialty Chemicals business.
The Specialty Chemicals business, which had revenues of EUR4.8 billion in 2016, is strongly positioned with a broad portfolio of leading technologies and chemicals which service a wide range of end-user segments including construction, industrial and consumer goods. The separation will allow the Specialty Chemicals business to continue to build and accelerate its market-leading positions across a range of market segments.
Considering various ownership structures
As part of the separation, Akzo Nobel will consider various alternative ownership structures for the Specialty Chemicals business including, but not limited to, the establishment of an independent listed entity. The ultimate structure will be determined by reference to shareholder value maximization as well as broader stakeholder considerations.
As you can see at our Top 25 rating, currently Akzo Nobel is Europe’s largest coatings Company. Sales of Akzo Nobel are at about 15 billion EUR per annum, whereof 10 billion EUR are allocated to the coating business. If Akzo would separate the specialty chemicals business, it would split of nearly one third of its annual sales.
Ton Büchner, CEO, Akzo Nobel:
“Our Specialty Chemicals business is an industry leader in many of the markets in which it operates and we are extremely proud of its heritage, performance and people. We are reviewing strategic options to separate it from the company to create focus for both Specialty Chemicals and the Decorative Paints and Performance Coatings group, allowing them to build further on their respective leadership positions.
“As stated at our full-year results announcement in February, we are now a leaner, more agile company with a solid financial and operational foundation and a focus on growth. Akzo Nobel has enjoyed a record performance in recent years in terms of profitability and has made significant strategic progress, allowing us to take this decision.
Meanwhile Akzo recected an takeover offer for the whole company.
