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US/EU: PPG walks way from €27bn Akzo Nobel takeover

By  |  June 1, 2017

US paints and coatings maker PPG Industries has dropped its attempt to buy Dutch rival Akzo Nobel in a 26.3 billion euro ($29.5 billion) deal, stung by repeated rejections from the company, legal defeats and hostility from Dutch politicians.

Although it has retained its independence, Akzo must make good on promises it made to appease shareholders unhappy after it refused to enter talks with Pittsburgh-based PPG.

Once PPG’s interest became known in March, Akzo set higher performance targets, promised 1.6 billion euros in extra dividends and unveiled plans to sell or float a chemicals subsidiary, which represents a third of company sales and profits.

PPG called off its pursuit on Thursday after almost three months. “We believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time,” PPG CEO Michael McGarry said in a statement.

Full Content: Bloomberg

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