PPG throws in towel and abandons quest for AkzoNobel
PPG Industries has abandoned its acrimonious quest to acquire its larger Dutch peer, AkzoNobel. The US-based paints and coatings group launched an attempt to buy AkzoNobel in early March, but announced on Thursday that it was withdrawing from the attempt.
‘We were hopeful throughout this process that AkzoNobel’s executive and supervisory 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,’ said PPG president and chief executive Michael McGarry.
‘We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.’
But, he said, their offer no longer stood: ‘AkzoNobel has consistently refused to engage. 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.’
PPG had until midnight on Thursday to make a firm offer for AkzoNobel or withdraw. Earlier this week, Dutch regulator AFM refused to extend this deadline.
AkzoNobel has rejected three shares and cash offers made by the Pittsburgh-based group since March. The last bid was for €26.9bn.
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