PPG walks away from launching hostile takeover bid for owner of Stowmarket Dulux paints factory
- Credit: Archant
A takeover bid which would have reunited to major employers in Stowmarket under single ownership has been abandoned.
US chemicals giant PPG Industries has made a series of informal offers to AkzoNobel, all of which have been rebuffed.
The most recent approach earlier this month, valuing Dulux paints owner AkzoNobel at 26.9bn euro (£23.3bn), was described by PPG as its final “friendly” offer.
But instead of launching a formal hostile takeover bid PPG has now opted to walk away, having failed to secure the agreement of the Dutch authorities to extend the deadline of tomorrow for making a formal offer.
Michael McGarry, PPG chairman and chief executive, 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.
“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.”
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PPG added that it had made a final attempt at engaging with AkzoNobel’s board last week, but did not receive a response.
Despite intense pressure from activist investor Elliot Advisors to engage with PPG, AkzoNobel has continued to favour its own strategy to accelerate growth.
AkzoNobel boss Ton Buchner 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 speciality chemicals.
“We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders.”
PPG and AkzoNobel own neighbouring factories in Stowmarket, both formerly owned by ICI. The AkzoNobel site in makes Dulux paints while the PPG plant manufactures automotive paints.