PPG has withdrawn its $27.6 billion proposal to combine with AkzoNobel and will not pursue a public offer for all the issued and outstanding shares of the Dutch company.

“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,” said Michael McGarry, PPG chairman and chief executive officer, in a statement. “We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.”

PPG made a final attempt for engagement with AkzoNobel late last week, but AkzoNobel’s boards did not respond to outreach efforts.

“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,” McGarry said.

Last week, a group of AkzoNobel shareholders, led by activist hedge fund Elliott Advisors, sued the Dutch company over its refusal to discuss a possible deal with PPG. AkzoNobel previously turned down three increasingly larger offers from PPG and refused to enter negotiation talks.

However, on Monday that group lost its legal fight to try to force Akzo’s boards to engage in talks with PPG.

“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 specialty chemicals,” said Ton Büchner, AkzoNobel CEO. “We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders.”

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