PPG has withdrawn from its bid to combine with AkzoNobel.
In a statement, PPG confirmed that it had made the decision not to pursue a public offer for all the issued and outstanding shares of AkzoNobel following careful consideration, including the stakeholder interests of both companies.
Michael McGarry, PPG Chairman and Chief Executive Officer (CEO), said: “We were hopeful throughout this process that AkzoNobel’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.
“We made a final attempt for engagement late last week and through a letter to AkzoNobel. In that letter, we addressed AkzoNobel’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, AkzoNobel’s Boards have consistently refused to engage and 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.
“As always, PPG remains focused on identifying growth opportunities that will drive value and strengthen our company. We remain committed to our longstanding disciplined approach to business portfolio management and cash deployment.”
Following the news,Ton Büchner, AkzoNobel CEO, 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. “Our talented teams around the world continue to develop, produce and deliver the most innovative and sustainable products and services for our customers, and I would like to thank all colleagues for their ongoing commitment. We reiterate our commitment to maintain an open and constructive dialog with our shareholders and all other stakeholders.”
Read the article online at: https://www.hydrocarbonengineering.com/tanks-terminals/05062017/ppg-withdraws-bid-for-akzonobel/