Netherlands-based firm rejects PPG takeover bid, and looks to tighten strategic focus on paints and coatings

After rejecting a takeover proposal from US firm PPG Industries, AkzoNobel plans to carve out its speciality chemicals business, which had revenues of €4.8 billion (£4.2 billion) in 2016.

AkzoNobel said it is considering various options for the form of the separation, including establishing an independent company focused exclusively on chemicals. The move will increase the company’s emphasis on paints and performance coatings.

AkzoNobel said it turned down PPG’s 2 March bid – worth around €21 billion – because it ‘substantially undervalues’ the company, contains ‘serious risks and uncertainties’, and is not in the interest of its shareholders, customers or employees.