PPG Drops Takeover Bid for Akzo Nobel
June 01 2017 - 6:17AM
Dow Jones News
By Ben Dummett
Paint giant PPG Industries Inc. dropped its $27.6 billion
takeover pursuit of Akzo Nobel NV Thursday, ending an unusually
bitter trans-Atlantic standoff pitting two of the world's oldest
industrial companies against each other.
PPG said it made the decision after the Pittsburgh-based
company's last ditch effort late last week failed to bring
management of its Dutch rival to the bargaining table.
The capitulation marks a setback in PPG's efforts to strengthen
its global reach and allows it to offer customers a broader
portfolio of paints and coatings. Rivals, and the chemicals
industry generally, have been consolidating to boost profits with
scale and cost-cutting.
Sherwin-Williams Co. agreed last year to acquire Valspar Corp.
for $9.3 billion. Some analysts considered PPG's bid for Akzo as a
strategic response to that pact. Meanwhile, U.S.-based Huntsman
Corp. last month agreed to merge with Switzerland's Clariant AG to
create a $14-billion chemicals company, producing an array of
products ranging from polyurethanes, pigments and automotive fluids
that are used in industries ranging from aerospace to household
cleaning.
Write to Ben Dummett at ben.dummett@wsj.com
(END) Dow Jones Newswires
June 01, 2017 06:02 ET (10:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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