PPG reiterates invitation to AkzoNobel to combine
PPG believes AkzoNobel should honour growing requests to engage and fully consider all relevant options to create the most value for all of its stakeholders, and benefit from the multiple months of preparation already completed by PPG.
PPG reiterated on 5 April 2017 its invitation to AkzoNobel to enter into discussions to explore PPG's proposal to form a combined company. This follows the previous announcements on 9 March 2017 and 22 March 2017.
PPG continues to believe that a combination of the two companies has a strong strategic rationale and presents a highly compelling and unique opportunity for both AkzoNobel and PPG and their respective stakeholders.
“We made a compelling offer to AkzoNobel that provides its shareholders with a significant premium and the opportunity to benefit from the upside potential of a stronger company that is well positioned for future growth and value creation. Together, we can create a stronger company that will benefit all of AkzoNobel’s stakeholders, including its Netherlands-based employees,” said Michael McGarry, PPG chairman and CEO.
Although AkzoNobel has declined PPG’s repeated invitations to meet, PPG remains committed to seeking engagement with AkzoNobel. PPG believes AkzoNobel should honour growing requests to engage and fully consider all relevant options to create the most value for all of its stakeholders, and benefit from the multiple months of preparation already completed by PPG.
“The resounding feedback we have received in the Netherlands, the UK and the US further validates the merits of combining PPG and AkzoNobel,” McGarry observed. “We are now even more convinced that this combination is in the best interests of all stakeholders of AkzoNobel,” McGarry added.
PPG has stated its commitment to address several areas of importance previously identified by AkzoNobel, such as continuing commitments to research and development, honouring existing employment terms of employees and social plans, locating key businesses in Europe and in the Netherlands, maintaining important public-private partnerships, and further strengthening community investments and commitments to sustainability and social responsibility. PPG can provide detailed answers to any specific concerns that AkzoNobel may have, including with respect to antitrust matters where PPG’s antitrust experts have conducted extensive analysis and are confident that there is a clear path forward to complete the transaction.
“We once again invite AkzoNobel to meet with us to learn more about our specific proposals. We are prepared to address all of AkzoNobel’s concerns in a collaborative and substantive manner, and the best approach for AkzoNobel is to engage with PPG in each of these important areas for the benefit of all stakeholders,” McGarry concluded.
In accordance with the Dutch law, PPG confirms its intention to make a public offer for all the issued and outstanding shares of AkzoNobel. A draft offer memorandum is currently expected to be submitted by PPG to the AFM no later than 1 June 2017.