March 9, 2017—AkzoNobel rejected an unsolicited $22.1 billion takeover bid from PPG Industries, saying instead it wanted to "unlock value" by spinning off its chemicals business.
In a statement, Akzo said PPG’s bid substantially undervalued the company. PPG, on the other hand, said its proposal was "attractive and comprehensive."
"We believe a combination is a very compelling strategic opportunity," said CEO Michael McGarry in a statement, adding he believed it was in the interest of shareholders, employees and customers as well.
"PPG ... has devoted has devoted significant time and resources to analyzing a potential combination of PPG and AkzoNobel and is confident in its ability to execute and complete the proposed transaction," it said.
Following the proposed deal, Bloomberg reported that CEO Ton Buechner "is taking head-on the longstanding question whether Akzo would fare better as a focused coatings company, without the distraction of making chemicals ranging from commodities including chlorine to cosmetic ingredients."
“Akzo Nobel has enjoyed a record performance in recent years in terms of profitability and has made significant strategic progress, allowing us to take this decision,” Buechner said in a statement.
“The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties," he added in the statement. "The proposal is not in the interest of AkzoNobel’s stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it."
