PPG abandons pursuit of Dulux firm AkzoNobel
The US owner of Johnstone's Paints gives up on its pursuit of its Dutch rival after all three of its takeover bids are rejected.
US chemicals giant PPG Industries has withdrawn its £26.9bn (£23.4bn) takeover bid for Dulux owner AkzoNobel.
The firm behind Johnstone's Paints had made three pitches in pursuit of its rival but they were all rejected by the group's board on value grounds.
During the last approach earlier in May, PPG had raised an earlier offer for the Dutch company by 8% to €96.75 per share.
But AkzoNobel said it was clear, following its talks with PPG and review of its last offer, that it did not offer the best return for shareholders and that its own strategy was the best way forward to accelerate growth.
PPG said it made a final attempt at engaging with AkzoNobel's board last week, but did not receive a response.
Michael McGarry, PPG chairman and chief executive, said: "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.
"We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.
"However, AkzoNobel's boards have consistently refused to engage and did not respond to our call or letter.
"As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time."
AkzoNobel, which bought ICI in 2008, employs 3,500 staff, while PPG has 10 manufacturing and research and development sites.
Ton Buchner, AkzoNobel's chief executive, said: "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 Speciailty Chemicals.
"We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders."