International. PPG has announced that it has withdrawn its proposal to combine with AkzoNobel and will not seek a public offering for all issued and outstanding shares of AkzoNobel. PPG made the final decision after careful consideration, including the interests of both companies' stakeholders.
"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. We strongly believe that a combined company would create more opportunities and offer more benefits to our collective customers, employees, shareholders and society at large," said Michael McGarry, president and chief executive officer of PPG.
"We made one last attempt at compromise at the end of last week and through a letter to AkzoNobel. In that letter, we addressed AkzoNobel's comment on value, certainty, timeliness, and stakeholder considerations, and offered additional and concrete commitments and assurances, including a significant breakout rate and an offer to negotiate a nominal price increase as part of an agreed transaction.
"However, the AkzoNobel Councils have consistently refused to participate and did not respond to our call or letter. As a result, we believe it is in the best interest of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time."
"As always, PPG remains focused on identifying growth opportunities that will drive value and strengthen our company. We remain committed to our long-standing disciplined approach to business portfolio management and cash deployment."
"I want to thank the many PPG employees for their interest and support throughout this process, especially those working within our facilities in the Netherlands. I would also like to thank the stakeholders in the Netherlands who were open to the opportunity to learn about the possibilities that a business combination could provide. We are proud to call the Netherlands home to many of our employees and businesses, and we look forward to our continued growth in this important country."
