Skip to main content

AkzoNobel rejects PPG bid

Published by , Senior Editor
Hydrocarbon Engineering,


AkzoNobel has confirmed that it has rejected a proposal from PPG Industries Inc. for all of the issued and outstanding ordinary shares in the capital of AkzoNobel.

AkzoNobel said that the proposal “substantially undervalues AkzoNobel and is not in the interest of its stakeholders, including its shareholders, customers and employees.”

The company also announced that as a result of the unsolicited, non-binding and conditional proposal, it has decided to bring forward a review of its strategic options for the separation of its Specialty Chemicals business.

As part of the separation, AkzoNobel will consider various alternative ownership structures for the business including, but not limited to, the establishment of an independent listed entity. The company said that the ultimate structure will be determined by reference to shareholder value maximisation as well as broader stakeholder considerations.

Ton Büchner, CEO, AkzoNobel, said: “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.

“Our decision today was brought forward due to recent events. The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties. The proposal is not in the interest of AkzoNobel’s stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it. Along with my colleagues on our Boards, our executive team and our thousands of employees, I firmly believe that AkzoNobel is best placed to unlock the value within our company ourselves.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/13032017/akzonobel-rejects-ppg-bid/

You might also like

The Hydrocarbon Engineering Podcast - Education and training for every phase of the insulating system design process

In this episode of the Hydrocarbon Engineering Podcast, Brandon Stambaugh, Owens Corning Director for Technical Services, joins us to discuss engineers’ demand for education and training to support the critical phases that affect the performance and longevity of insulating systems.

Tune in to the Hydrocarbon Engineering Podcast on your favourite podcast app today.

Apple Podcasts  Spotify Podcasts  YouTube

 
 

Embed article link: (copy the HTML code below):