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AkzoNobel no longer intends to acquire Tikkurila and continues to focus on Grow & Deliver strategy

February 08/2021

MOSCOW (MRC) --AkzoNobel N.V. no longer intends to acquire Tikkurila following a higher competing offer from US paints and coatings producer PPG Industries, according to the company's press release on Monday.

Akzo Nobel submitted a binding proposal to acquire Tikkurila for EUR31.25 per share on January 28, 2021, having conducted customary due diligence to confirm potential synergies. The company no longer intends to pursue this acquisition, following a competing, higher, offer for Tikkurila. Despite a strong cultural fit - and more synergies than any other combination with Tikkurila - the intended transaction no longer meets AkzoNobels criteria for superior value creation.

Thierry Vanlancker, CEO of AkzoNobel, commented: We have clear priorities and criteria for capital allocation, including investing for growth, paying dividends, conducting acquisitions, and carrying out share buybacks. The intended acquisition of Tikkurila can no longer compete with more attractive opportunities to create superior value for our shareholders and other stakeholders. Executing with discipline has been key to AkzoNobels transformation into a company with higher profitability and strong free cash flow. This is working well for us and part of who we are.

AkzoNobel will continue delivering on its capital allocation priorities, including a disciplined approach to strategically aligned, value creating, acquisitions. The company continues its current 300 million share buyback program and maintains a target leverage ratio of 1-2x net debt/EBITDA.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1%  year on year.


mrcplast.com
Author:Margaret Volkova
Tags:Europe, propylene, ethylene, coatings, petrochemistry, paints and coatings, Akzo Nobel Functional Chemicals BV, PPG, Tikkurila, Russia, USA, Finland.
Category:General News
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