Dutch paints company AkzoNobel has successfully fought off the unwanted advances of US rival PPG Industries. For now.
PPG will not make a fourth takeover offer for Dulux owner Akzo, it said in a statement. AkzoNobel’s share price had fallen 1.5 per cent to €73.40 at the time of writing.
Under takeover rules, the US firm faced a deadline of midnight today, 1 June, to make another bid for Akzo. In ruling out an offer, under takeover rules, PPG will not be free to make another bid for at least six months.
PPG had applied to Dutch authorities to have the deadline extended, but this was rejected earlier in the week.
PPG chairman and chief executive Michael McGarry did not appear to fully close the door on a future offer.
“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,” he said.
“We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.”
Akzo has brushed off three takeover offers from PPG, the last valuing the Dutch firm at €26.9bn, despite intense pressure from shareholders led by Elliott Advisors.
McGarry revealed PPG had made a last-ditch effort to engage with Akzo late last week but that a letter had been met with silence.
He said: “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.”
Akzo chief executive 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.”