Amsterdam-based paints and coatings producer AzkoNobel said on Wednesday it had reached agreement with its largest shareholder Elliott Advisors to ‘normalise’ their relationship.

Elliott has been supporting PPG Industries in its bid to acquire Akzo since the American group made its initial offer to buy the Dutch firm in early March.

The agreement includes alignment on the AkzoNobel strategy to fully separate its specialty chemicals arm. In addition, Elliott will support the appointment of Thierry Vanlancker as head of the executive board at the upcoming extraordinary general meeting on 8 September.

AkzoNobel and Elliott have also agreed, subject to the terms of a standstill agreement, to seek to suspend all ongoing litigation for at least three months.

PPG’s last offer valued the Dutch company at €26.9bn.