Akzo Nobel rebuffs takeover approach from PPG, mulls over separating Specialty Chemicals division
The separation would allow the Specialty Chemicals "to build and accelerate its market-leading positions" in different market segments. Establishment of an independent listed company is one of the options, says Akzo Nobel.
Paints and chemicals company Akzo Nobel has rejected an unsolicited, non-binding offer by the PPG Industries to acquire all issued and outstanding ordinary shares in the company. Akzo Nobel explained that PPG takeover proposal substantially undervalued Akzo Nobel and was not in the interest of its shareholder, customers and employees.
Akzo Nobel announced that PPG has offered €54 in cash and 0.3 PPG shares per Akzo Nobel Share. According to media reports, this puts the transaction value at €21bn.
PPG confirmed that it made an proposal to Akzo Nobel on 2 March 2017, inviting the company to enter into negotiations with PPG on a potential transaction to form a combined company, which AkzoNobel rejected.
Instead, Akzo Nobel is reviewing strategic options for its Specialty Chemicals business, including a possible listing of the division as an independent entity.
Akzo Nobel's Specialty Chemicals had revenues of €4.8bn in 2016, the company announced.
Find the entire article and any associated background information in EUWID Pulp and Paper no. 11.2017.
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