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.
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(END) Dow Jones Newswires
June 01, 2017 06:02 ET (10:02 GMT)