On the morning of March 9, Beijing time, according to Bloomberg, citing people familiar with the matter, PPG was launching a potential deal with AkzoNobel. People familiar with the matter said that PPG and its advisers are studying a transaction that may involve the acquisition of some or all of AkzoNobel's equity.
However, the plot quickly reversed. On the afternoon of March 9th, Beijing time, AkzoNobel issued an announcement on its global website, stating that it had rejected a bid from a competitor PPG, the world's largest coating company, and said the bid "underestimated" the company.
AkzoNobel said it has been considering selling its specialty chemicals business, which had sales of 4.8 billion euros ($ 5.05 billion) in 2016.
Paint giant PPG Want to buy AkzoNobel or triggers "big earthquake" in chemical industry
According to Bloomberg, citing people familiar with the matter, PPG is launching a potential deal with AkzoNobel. People familiar with the matter said that PPG and its advisers are studying a transaction that may involve the acquisition of some or all of AkzoNobel's equity. Details were not disclosed, but no agreement was reached.
Spokespeople for PPG and AkzoNobel declined to comment.
According to the British "Financial Times", it is not yet clear whether the acquisition negotiations between the two are friendly or whether PPG is trying to make a hostile acquisition.
PPG and AkzoNobel are the two giants in the coatings industry, with products ranging from protective coatings for the iPhone to industrial paints.
According to PPG's official website, PPG has 156 factories in the world producing paints, special materials and fiberglass, etc. It is the world's largest manufacturer of automotive and aerospace coatings and ranks second in the world in the construction and packaging market. PPG also provides nuclear-grade coating protection systems for nuclear power plants. Most of the nuclear-grade protective coatings for Daya Bay Nuclear Power Station, China's first commercial nuclear power plant, come from PPG.
AkzoNobel is headquartered in Amsterdam, the Netherlands. It is the largest chemical company in the Netherlands and a global giant in the chemical industry. AkzoNobel is the largest supplier of coatings in Europe and the world's largest producer of protective and marine coatings. Its product portfolio spans basic chemicals, from chlorine-related products to skin cream formulations and paints used in Formula 1 racing. Commonly used architectural decorative paints, Dulux is also an AkzoNobel brand.