LONDON (ICIS)--PPG has withdrawn its proposal to combine with AkzoNobel and will not pursue a public offer for all issued and outstanding shares of the Dutch firm, the US paints and coatings producer announced on Thursday.
PPG said it made a final attempt to engage with AkzoNobel last week through a letter, stating that the letter addressed AkzoNobel’s concerns in regards to value, certainty, timing and stakeholder considerations.
However, PPG said that AkzoNobel declined to respond to its calls or the letter and as a result the company confirmed that it would withdraw its proposal.
“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.
“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 had until the end of business on 1 June to submit a new proposal for AkzoNobel or face a six-month wait before pursuing the bid.
Ton Buchner, CEO at AkzoNobel, noted PPG’s announcement, saying: “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.
“We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders.
“Our talented teams around the world continue to develop, produce and deliver the most innovative and sustainable products and services for our customers, and I would like to thank all colleagues for their ongoing commitment. We reiterate our commitment to maintain an open and constructive dialogue with our shareholders and all other stakeholders.”
(update adds AkzoNobel commentary from paragraph seven)