Akzo Nobel Rejects $22 Billion Offer From PPG
Dutch chemicals maker says offer substantially undervalues the company
Dutch paints and chemicals maker Akzo Nobel NV said Thursday it has rejected an unsolicited €20.9 billion ($22.1 billion) offer from U.S. peer PPG Industries Inc.
Amsterdam-based Akzo said PPG made an offer of €54 in cash and 0.3 PPG shares for each Akzo share, corresponding to a value of €83 a share.
Akzo, which counts Dulux, Sikkens, Interpon and Eka among its brands, said PPG’s proposal “substantially” undervalues the company and isn’t in the interest of its shareholders.
The company now plans to review options for the separation of its specialty-chemicals business, which generated revenue in 2016 of €4.8 billion.
Akzo said it would consider various alternative ownership structures for the specialty-chemicals business, including a new independent listed entity.
At close of business Wednesday, Akzo had a market capitalization of $17.12 billion, while PPG’s was $27.47 billion.