PPG recently issued a statement in connection with its proposal to AkzoNobel to form a combined company.
In the proposal, the company states that it has listened carefully to AkzoNobel's new strategic plan, and it continues to believe in the merits of combining the two companies. PPG reportedly believes that AkzoNobel’s new strategic plan will be more risky and create more uncertainty for AkzoNobel stakeholders including employees and pensioners, as Akzo's revised strategy would create two smaller, unproven companies and result in additional restructuring.
The company reports it has a proven and demonstrated record of executing on strategic actions and driving performance and growth, and states that it continues to believe that a combination of PPG and AkzoNobel is in the best interest of all stakeholders. PPG says it believes that the combined company will be much better positioned to take advantage of the opportunities in their current markets and will deliver superior shareholder returns.
The proposal would create more value, as it provides an immediate cash payout far in excess of AkzoNobel’s special dividend and is supplemented with PPG shares. The company reportedly has a proven track record of delivering superior shareholder returns over the last five- and 10-year periods, and it believes past performance remains the best predictor of future performance.
The company believes that by listening to shareholders and delivering innovative products that enable its customers to be more successful, it has consistently delivered value in excess of the S&P 500 average. Today, the company reports that it has not heard anything that changes its belief in the value of combining the two companies, and it believes that now is the time for a complete review and full consideration of its offer to combine PPG and AkzoNobel.