PPG reiterates invitation to Akzo Nobel to discuss combination of the two companies
Strong strategic rationale
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 Akzo Nobel and PPG and their respective stakeholders. “We made a compelling offer to Akzo Nobel 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 Akzo Nobel’s stakeholders, including its Netherlands-based employees,” said Michael McGarry, PPG Chairman and CEO.
Feedback validates merits
Although Akzo Nobel has declined PPG’s repeated invitations to meet, PPG remains committed to seeking engagement with Akzo Nobel. PPG believes Akzo Nobel 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 U.K. and the U.S. further validates the merits of combining PPG and Akzo Nobel,” McGarry said. “We are now even more convinced that this combination is in the best interests of all stakeholders of Akzo Nobel.”
Clear path forward
PPG has stated its commitment to address several areas of importance previously identified by Akzo Nobel, 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 Akzo Nobel 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.
Invitation to dialogue
“We once again invite Akzo Nobel to meet with us to learn more about our specific proposals. We are prepared to address all of Akzo Nobel’s concerns in a collaborative and substantive manner, and the best approach for Akzo Nobel is to engage with PPG in each of these important areas for the benefit of all stakeholders,” McGarry said.
In accordance with Dutch law, PPG confirms its intention to make a public offer for all the issued and outstanding shares of Akzo Nobel. A draft offer memorandum is currently expected to be submitted by PPG to the AFM no later than June 1, 2017.