AkzoNobel Rejects PPG Bid; Reviewing Strategic
Options to Separate Specialty Chemicals
AkzoNobel has announced a re- view of strategic options for the separation of its Specialty
Chemicals business.
The Specialty Chemicals business,
which had revenues of € 4.8 billion in
2016, is strongly positioned with a broad
portfolio of leading technologies and
chemicals which service a wide range of
end-user segments including construction, industrial and consumer goods.
The separation will allow the Specialty
Chemicals business to continue to build
and accelerate its market-leading positions across a range of market segments.
As part of the separation, AkzoNobel
will consider various alternative ownership structures for the Specialty Chemicals
business including, but not limited to, the
establishment of an independent listed
entity. The ultimate structure will be determined by reference to shareholder
value maximization as well as broader
stakeholder considerations.
The decision was brought forward following confirmation that AkzoNobel has
rejected an unsolicited, non-binding and
conditional proposal from PPG Industries
Inc. for all of the issued and outstanding ordinary shares in the capital of
AkzoNobel. PPG’s proposal substantially
undervalues AkzoNobel and is not in the
interest of its stakeholders, including its
shareholders, customers and employees.
Ton Büchner, CEO, AkzoNobel, said:
“Our Specialty Chemicals business is an
industry leader in many of the markets in
which it operates and we are extremely
proud of its heritage, performance and
people. We are reviewing strategic options
to separate it from the company to create
focus for both Specialty Chemicals and
the Decorative Paints and Performance
Coatings group, allowing them to build
further on their respective leadership
positions.“We understand our role in
society and want to protect our ability
to continue to invest in communities, re-
search and development, innovation and
sustainability in the countries in which
we operate.”
AkzoNobel confirms it received an
unsolicited, non-binding and conditional
proposal from PPG for a public offer on
all of the issued and outstanding ordi-
nary shares in the capital of AkzoNobel
at a price of € 54.00 in cash and 0.3 PPG
shares per AkzoNobel share, correspond-
ing to a value of €83.00 per share as per
28 February, 2017.
The Board of Management and
Supervisory Board of AkzoNobel have
carefully reviewed and considered the
proposal by PPG, together with their fi-
nancial and legal advisors. In doing so,
the Boards have taken into account the
long-term interests of all AkzoNobel
stakeholders, including the shareholders.
The Boards have unanimously con-
cluded that the PPG proposal substan-
tially undervalues AkzoNobel by failing
to reflect the long-term value creation
potential of the company. The Boards
have also concluded that the equity com-
ponent of the proposal has significant is-
sues, including the high leverage of the
proposed combination. They also believe
the proposal carries significant delivery
and timing risk for shareholders, both in
relation to substantial anti-trust issues,
pension schemes and the achievability of
proposed synergies.
The Board of Management and the
Supervisory Board of AkzoNobel also believe the proposal is not in the interest of
stakeholders including its customers and
employees. The proposal would be detrimental to the societies and economies
in which AkzoNobel operates, including
potentially jeopardizing the company’s
major contribution to communities and
research & development organizations
globally and its deep commitment to
sustainability. The proposal is not in the
interests of AkzoNobel employees and
would create potential uncertainty for
thousands of jobs worldwide. CW
Index to Companies
This index gives the starting page for a department or feature with a significant reference to a manufacturer of paint, coatings, adhesives and sealants
Subsidiaries are indexed under their own names.
AkzoNobel.............................................................................................8, 10, 32
Axalta Coating Systesm............................................................................. 10, 58
BASF ............................................................................................................... 32
Benjamin Moore ....................................................................................... 28, 34
Dunn-Edwards .......................................................................................... 10, 34
Jotun ............................................................................................................... 28
PPG........................................................................................................... 10, 34
RPM ............................................................................................................... 10
Sherwin-Williams ............................................................................................ 10
Sika ................................................................................................................. 10
Teknos ............................................................................................................ 10
Volatile Free .................................................................................................... 28
3M .................................................................................................................. 28
