PPG ends quest to acquire Akzo Nobel
PPG has withdrawn its proposal to combine with Akzo Nobel and will not pursue a public offer for all the issued and outstanding shares of Akzo Nobel.
PPG made the final decision today after careful consideration, including the stakeholder interests of both companies.
Hopeful throughout the process
“We were hopeful throughout this process that Akzo Nobel’s Boards would see the merits of our compelling proposal to combine our two great companies and create significant shareholder value and a more sustainable business for the future. We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general,” said Michael McGarry, PPG chairman and chief executive officer.
Final attempt for engagement
“We made a final attempt for engagement late last week and through a letter to Akzo Nobel. In that letter, we addressed Akzo Nobel’s stated commentary around value, certainty, timing and stakeholder considerations, and provided additional and specific commitments and assurances including a significant break-fee and an offer to negotiate a nominal price increase as part of an agreed transaction. However, Akzo Nobel’s Boards did not respond to our call or letter. As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time”, added McGarry.
Akzo Nobel reaffims spin-off
In a press release, Akzo Nobel reaffirmed its commitment to accelerating growth and enhancing profitability by creating two focused, high-performing businesses – Paints and Coatings and Specialty Chemicals. “We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders”, Ton Büchner, Akzo Nobel CEO, said.
