AkzoNobel Walks Away from Tikkurila
AkzoNobel has conceded defeat in its bid to buy Tikkurila, leaving the way clear for US rival PPG Industries to continue with its acquisition of the Finnish paints and coatings company.
In a statement issued on Feb. 8, the Dutch group said it no longer intends to pursue the acquisition. “Despite a cultural fit – and more synergies than any other combination with Tikkurila – the intended transaction no longer meets AkzoNobel’s criteria for superior value creation,” the company stated.
“We have clear priorities and criteria for capital allocation, including investing for growth, paying dividends, conducting acquisitions and carrying out share buybacks,” said AkzoNobel CEO Thierry Vanlancker. “Executing with discipline has been key to AkzoNobel’s transformation into a company with higher profitability and strong free cash flow. This is working well for us and part of who we are.”
The Amsterdam-headquartered group offered about €1.4 billion for Tikkurila on 18 Jan, forcing PPG to raise its bid of about €1.24 billion to the final agreed price of approximately €1.52 billion. PPG is expecting to close on the acquisition either in March or early in the second quarter.
Author: Ellaine Burridge, Freelance Journalist
