PPG Withdraws Proposal, Efforts to Pursue Offer for AkzoNobel

PPG announces that it has withdrawn its proposal to combine with AkzoNobel and will not pursue a public offer for all issued and outstanding shares of AkzoNobel.

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PPG announces that it has withdrawn its proposal to combine with AkzoNobel and will not pursue a public offer for all issued and outstanding shares of AkzoNobel. PPG made the final decision on June 1 after careful consideration, including the stakeholder interests of both companies.

“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,” says Michael McGarry, PPG chairman and chief executive officer. “We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.”

PPG made a final attempt in its proposals at the end of May through a letter addressing the companies values and considerations for stakeholders, offering additional commitments and assurances hoping to negotiate a fair transaction. Despite the final efforts, AkzoNobel’s boards have consistently rejected proposals and further negotiation, PPG says.

“As always, PPG remains focused on identifying growth opportunities that will drive value and strengthen our company. We remain committed to our longstanding disciplined approach to business portfolio management and cash deployment,” McGarry says.

According to AkzoNobel, the company is now turning its attention to the views of its own stakeholders. AkzoNobel recently announced its plan to implement a program closely looking at improving shareholder relationships in respect to PPG’s proposals.

“We highly value shareholder perspectives and regret that a number of shareholders believe we have insufficiently explained our considerations in respect of PPG’s proposals,” says Ton Buchner, AkzoNobel CEO. “We understand our responsibility and accountability to shareholders and will do our best to provide further insight in order to increase understanding concerning our strategic decisions. We will be seeking and listening to feedback with an aim to improving these important relationships.”

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