AMSTERDAM - AkzoNobel has declined a third unsolicited offer by PPG to purchase the company. The proposed offer was valued at approximately €26.9 billion, or $28.8 billion. In a statement released on May 8, AkzoNobel said that it would follow the strategy for the company outlined in April, in which it will spin off its chemicals business, stating that the plan “offers a superior route to growth and long-term value creation and is in the best interests of shareholders and all other stakeholders.”
Ton Buchner, AkzoNobel CEO, said in the statement, "As part of our fiduciary duties we conducted an extensive review of the third proposal from PPG. This process included myself and Antony Burgmans meeting with the CEO and lead independent director of PPG to understand their proposal in more detail.
"The PPG proposal undervalues AkzoNobel, contains significant risks and uncertainties, makes no substantive commitments to stakeholders and demonstrates a lack of cultural understanding.
"By contrast, AkzoNobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders. We will deliver this within a clear timeline, without the substantial level of risks and uncertainties attached to the alternative proposal.
"We have a strong track record of delivering on our commitments and are fully focused on accelerating growth momentum and enhanced profitability with the creation of two focused, high-performing businesses - Paints and Coatings and Specialty Chemicals - which will lead to a step change in growth and long-term value creation for shareholders and all other stakeholders."