Amsterdam, Netherlands — March 9, 2017 — AkzoNobel has recently rejected an unsolicited takeover bid submitted by PPG. The bid valued the company at $22 billion USD. According to an official statement from AkzoNobel, the bid “… substantially undervalues AkzoNobel and is not in the interest of its stakeholders, including its shareholders, customers and employees.”
“The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties,” said Ton Büchner, AkzoNobel’s CEO. “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.”
In brief, the Board of Management and Supervisory Board of AkzoNobel unanimously concluded that “the PPG proposal substantially undervalues AkzoNobel by failing to reflect the long-term value creation potential of the company.”
While AkzoNobel has rejected PPG’s takeover offer, the company has stated that it is reviewing options for the separation of its Specialty Chemicals business. The Specialty Chemicals business racked up revenues of €4.8 billion in 2016, or about $6.87 billion CAD. A statement from AkzoNobel says the company is considering alternative ownership structures for that part of the company. One possibility is the establishment of an independent listed entity.
“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,” said Buchner in an official statement. “As stated at our full-year results announcement in February, we are now a leaner, more agile company with a solid financial and operational foundation and a focus on growth. AkzoNobel has enjoyed a record performance in recent years in terms of profitability and has made significant strategic progress, allowing us to take this decision.”
This isn’t the first time PPG has tried to purchase part of AkzoNobel’s business. PPG successfully acquired AkzoNobel’s North American architectural coatings division in 2013 for $1.05 billion USD.