Sector News

PPG says could walk away from bid for Akzo Nobel

May 12, 2017
Chemical Value Chain

Paint maker PPG Industries said on Wednesday it could walk away from its pursuit of Dutch peer Akzo Nobel, which has rejected three takeover bids from the U.S. firm.

Reacting to Akzo’s rejection of PPG’s latest proposal on May 8, PPG repeated that it believed the deal would be in the best interests of both companies.

PPG has significant support among Akzo shareholders. But opposition from its boards, Dutch politicians and many of its Dutch staff present difficulties that PPG will have to weigh before a June 1 deadline to file bidding papers with the Dutch authorities or walk away for at least six months.

“PPG remains willing to meet with Akzo Nobel to engage in meaningful discussions,” PPG said in a statement. “But without productive engagement, PPG will assess and decide whether or not to pursue an offer for Akzo Nobel.”

Shares in Akzo fell 1.4 percent to 75.95 euros, far below PPG’s cash-and-shares takeover proposal, which is worth or 94.39 euros per Akzo share, valuing the Dutch firm at 25.6 billion euros ($27.82 billion) including debt.

Under Dutch takeover rules, PPG must decide by June 1 whether it will submit papers to the Dutch Financial Markets Authority (AFM) showing it has financing in place and is serious about launching a formal takeover bid for Akzo.

Otherwise PPG would have to refrain from making further attempts to pursue Akzo during a six-month cooling off period.

If PPG does file with the AFM, it would still have a final chance to walk away without further costs before launching a formal bid.

By Toby Sterling

Source: Reuters

comments closed

Related News

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?