PPG: AkzoNobel merger a ‘unique opportunity’
Shares in AkzoNobel have jumped by more than 14% this morning after it emerged that it had rejected a takeover bid from paint rival PPG. Meanwhile, PPG shares also rose after news of a potential merger broke.
AkzoNobel rejected the €20.9bn offer, saying it undervalued the company and threatened jobs and research and development, but did not completely rule out further negotiations when CEO Tom Buechner said, ‘Any future proposition is pure speculation.’
PPG has said publically it still believes in the viability of the deal.
Michael McGarry, chairman and CEO of PPG, said, ‘PPG has long admired AkzoNobel’s businesses, global presence, culture and principles as well as its advances in innovative product development and sustainable business practices.
‘We believe a combination of our two companies is a very compelling strategic opportunity. We are confident that this combination is in the best interests of the stakeholders of both companies as it presents a unique opportunity to build on the successful legacies of our businesses. PPG has carefully considered the interest of all AkzoNobel stakeholders including shareholders, employees, customers and the communities it serves and has proposed its willingness to enter into serious commitments in respect of all stakeholders.’