PPG abandons £23.3bn AkzoNobel takeover attempt
US chemicals giant PPG Industries has abandoned its 26.9 billion euro (£23.3 billion) pursuit of Dulux owner AkzoNobel.
PPG had made several informal attempts to take AkzoNobel over but was continuously rebuffed by the group's board, which favours its own strategy to accelerate growth.
Michael McGarry, PPG chairman and chief executive, said: "We were hopeful throughout this process that AkzoNobel's boards would see the merits of our compelling proposal to combine our two great companies and create significant shareholder value and a more sustainable business for the future.
"We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.
"However, AkzoNobel's boards have consistently refused to engage and did not respond to our call or letter. As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time."
The decision comes after PPG failed to gain an extension from Dutch authorities on Thursday's deadline to make a formal offer.
The group added that it made a final attempt at engaging with AkzoNobel's board last week, but did not receive a response.
AkzoNobel had come under intense pressure from activist investor Elliot Advisors to engage with PPG.
AkzoNobel boss Ton Buchner said: "We continue to focus on our business, pursuing our strategy of accelerating sustainable growth and profitability and creating two focused, high-performing businesses - Paints and Coatings and Specialty Chemicals.
"We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders."