Dutch paints and coatings maker Akzo Nobel NV rejected a 21 billion euro ($22 billion) bid from larger US rival PPG Industries Inc on Thursday, saying instead it wanted to "unlock value" by spinning off its chemicals business. PPG's unsolicited offer comes just days before an election where the vulnerability of the biggest Dutch companies to foreign takeover has been an issue. Underlining such concerns, the country's Economic Affairs Minister Henk Kamp said the proposed deal was "not in the interest of the Netherlands."
Akzo Chief Executive Ton Buechner said the maker of Dulux paint was best placed to create value itself and was looking at floating or selling its specialty chemicals arm, which accounts for roughly a third of sales and earnings, with a 2016 operating profit of 629 million euros on sales of 4.8 billion euros.
The cash and share offer from PPG was "unsolicited, non-binding and conditional" and worth around 83 euros per share, Akzo said. The bid represented a 29 percent premium to Akzo's closing price of 64.42 euros on Wednesday and its shares almost 15 percent to 73.95 euros on Thursday, nearing all-time highs. Pittsburgh-based PPG confirmed its approach on Thursday, saying its proposal was "attractive and comprehensive."
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