PPG Drops Takeover Bid for Akzo Nobel

By Ben DummettFeaturesDow Jones Newswires

Paint giant PPG Industries Inc. dropped its $27.6 billion takeover pursuit of Akzo Nobel NV Thursday, ending an unusually bitter trans-Atlantic standoff pitting two of the world's oldest industrial companies against each other.

PPG said it made the decision after the Pittsburgh-based company's last ditch effort late last week failed to bring management of its Dutch rival to the bargaining table.

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The capitulation marks a setback in PPG's efforts to strengthen its global reach and allows it to offer customers a broader portfolio of paints and coatings. Rivals, and the chemicals industry generally, have been consolidating to boost profits with scale and cost-cutting.

Sherwin-Williams Co. agreed last year to acquire Valspar Corp. for $9.3 billion. Some analysts considered PPG's bid for Akzo as a strategic response to that pact. Meanwhile, U.S.-based Huntsman Corp. last month agreed to merge with Switzerland's Clariant AG to create a $14-billion chemicals company, producing an array of products ranging from polyurethanes, pigments and automotive fluids that are used in industries ranging from aerospace to household cleaning.

Write to Ben Dummett at ben.dummett@wsj.com

(END) Dow Jones Newswires

June 01, 2017 06:02 ET (10:02 GMT)