March 24, 2017—AkzoNobel on Wednesday declined to accept a roughly $24.2 billion offer for a buyout from paint company PPG.
“The proposal not only fails to reflect the current and future value of AkzoNobel, it also neglects to address the significant uncertainties and risks for shareholders and other stakeholders,” the company stated in a press release.
PPG on Wednesday said in a press release that AkzoNobel had rejected its offer in a day. PPG suggested that a merger of the companies would make for a robust product line.
However, AkzoNobel said the offer simply didn’t meet the company’s financial needs, saying that the offer isn’t in the best interests of stockholders, contains significant risks related to an increased stock component and the high leverage of the proposed combined businesses, and, among other concerns, would likely lead to significant job cuts.
