Paints, coatings and materials manufacturer PPG confirmed that it made an "attractive and comprehensive" proposal to AkzoNobel inviting it to enter into negotiations on a potential transaction to form a combined company, which AkzoNobel rejected.
“PPG continues to believe there is a strong strategic rationale for the proposed transaction between PPG and AkzoNobel and will carefully evaluate and consider its position and path forward related to its proposal,” said the Pittsburgh-based company in a press release.
PPG operates nine manufacturing plants in Mexico, eight in the Central Region and one in Monterrey, in the Northern state of Nuevo Leon, as well as a Technical Center and an administrative facility.
The production facilities manufacture coatings for architectural, automotive and industrial applications.
Meanwhile AkzoNobel has more than 500 employees in Mexico across three production sites, two of them located in the central State of Mexico and one more in Apodaca, Nuevo Leon. Two of those facilities manufacture performance coatings and one is dedicated to specialty chemicals.
Michael McGarry, chairman and CEO of PPG, said, “PPG has long admired AkzoNobel’s businesses, global presence, culture and principles as well as its advances in innovative product development and sustainable business practices. We believe a combination of our two companies is a very compelling strategic opportunity.”
Strategically, the combination of PPG and AkzoNobel would deliver an enhanced global player in paints, coatings and specialty materials, combining complementary products, technologies and geographies, and would create a stronger competitor in a highly competitive global marketplace, offering a broader line of products and technologies cost-effectively to a more diverse customer base. Financially, the combination would create a stronger enterprise with a solid investment grade rating.