Akzo Nobel, the Dutch paints and coatings group, has confirmed it has rejected a €26.9bn offer from US rival PPG Industries and will instead focus on its own strategy to accelerate growth and create value.
The company said in a statement that following an extensive review and careful consideration of PPG’s unsolicited offer, it would stick with its own plans, laid out in an April 19 “road map” which included the creation of two “focused and high performing Paints and Coatings and Speciality Chemicals businesses” and a 50 per cent higher dividend for 2017, among other things.
Ton Buchner, AkzoNobel chief executive, said:
The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding.
By contrast, AkzoNobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders. We will deliver this within a clear timeline, without the substantial level of risks and uncertainties attached to the alternative proposal.