Dutch paints and specialty chemicals group Akzo Nobel rejected a second offer by PPG, saying it significantly undervalued the company and carried significant uncertainty and risks.
Akzo Nobel itself wants to separate its specialty chemicals business and concentrate on paints, also the focus of PPG. Akzo Nobel says that there were a lot of execution risks and anti-trust issues connected to any PPG deal and expected substantial divestures and significant job cuts.
“We are convinced that AkzoNobel is best placed to unlock the value within our company ourselves. We are executing our plan, including the creation of two focused businesses and new cost structure, and believe this gives us a strong platform for continued profitability and long term value creation for all our stakeholders with substantially less execution risks.” Akzo Nobel CEO Ton Büchner said in a statement. MORE