PPG Industries and AkzoNobel mull possible combination
PPG Industries, the world's largest coatings company, is exploring potential deal with the Dutch rival Akzo Nobel, Europe's largest coatings supplier and the world's largest producer of protective and marine coatings, Bloomberg reported citing sources. The combination could create a $42bn global chemicals giant, people briefed about the talks said. The report said that PPG is working with advisers to study a transaction that could involve acquiring all or part of Amsterdam-based Akzo with a market value of about $17 billion. Pittsburgh-based PPG has a with a market valuation of about $25.9 billion. According to FT, the news of the talks emerged at a politically sensitive time in the Netherlands, where nationalist sentiments are on the rise ahead of next week’s general election. Both the companies declined to make comments, various media reports said. It was unclear whether the talks held between the two groups were on friendly terms or whether PPG is trying to do a hostile takeover. PPG said in December it would launch a global restructuring program, targeting $125 million in annual savings, says Reuters. Akzo Nobel, whose brands include Dulux paint, fell short of analyst estimates regarding its earnings in the last three months of 2016, as the marine and energy sectors weighed, while restructuring costs also put pressure on results.