Akzo Nobel bid for Finnish Tikkurila paint company for 1.4 billion euros

On January 18, the Dutch paint and coating company Akzo Nobel offered to bid for the Finnish Tikkurila Paint Company for 1.4 billion euros in an attempt to defeat the acquisition of the American paint giant PPG Industries.

The proposal includes an all-cash public purchase price of all issued and issued shares of Tikkurila at a price of 31.25 euros per share, with a total equity value of approximately 1.4 billion euros (approximately RMB 11 billion).

In order to obtain merger approval and ensure the certainty of the transaction between Tikkurila and its shareholders, Akzo Nobel has reached key terms for the sale of assets with Hempel, including Akzo Nobel’s decorative coatings business in Northern Europe and the Baltic Sea. The public offer made by Akzo Nobel to Tikkurila will be completed.

On December 18, 2020, PPG issued an announcement stating that it had reached a final agreement with Tikkurila to acquire Tikkurila at a cash price of EUR 25 per share and a total price of EUR 1.1 billion. However, on January 5, 2021, PPG and Tikkurila jointly announced that the two parties have signed a new agreement to modify the previously announced merger agreement. After the amendment, PPG increased its offer for Tikkurila-the price per share was increased from 25 euros to 27.75 euros, and the total purchase price was also increased from 1.1 billion euros to 1.24 billion euros (including debt, etc.).