PPG has abandoned its takeover of AkzoNobel, drawing to a close a three-month pursuit of its paint-making rival.
AkzoNobel’s board has consistently rebuffed approaches from its US rival. PPG CEO Michael McGarry issued a statement yesterday saying a final offer made last week had been ignored.
“AkzoNobel…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,” McGarry said.
PPG has argued throughout that merging the companies would benefit shareholders. In reaction, AkzoNobel said the €26.9bn (US$28.8bn) bid undervalued the Dutch company and instead issued plans to create more value by selling off its specialty chemicals unit.
Responding to PPG’s withdrawal, AkzoNobel CEO Ton Büchner said: “We continue to focus on our business, pursuing our strategy of accelerating sustainable growth and profitability and 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.”
The takeover tussle has been bitter at times, with Elliott Advisors – a major AkzoNobel shareholder – taking legal measures to force out company chairman Anthony Burgmans but Dutch authorities dismissed the case.
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