AkzoNobel no longer intends to acquire Tikkurila
AkzoNobel no longer intends to acquire Tikkurila and will instead focus on its ‘Grow and Deliver’ strategy.
The Dutch paints and coatings manufacturer made a binding proposal to acquire the Finnish company for €31.25 per share last month, having conduced due diligence.
However, a company statement on 8 February said that AkzoNobel no longer intends to pursue the acquisition following a competing, higher offer.
Thierry Vanlancker, CEO of AkzoNobel, commented: “We have clear priorities and criteria for capital allocation, including investing for growth, paying dividends, conducting acquisitions, and carrying out share buybacks.
“The intended acquisition of Tikkurila can no longer compete with more attractive opportunities to create superior value for our shareholders and other stakeholders.
“Executing with discipline has been key to AkzoNobel’s transformation into a company with higher profitability and strong free cash flow. This is working well for us and part of who we are.”
AkzoNobel will continue delivering on its capital allocation priorities, including a disciplined approach to strategically aligned, value creating, acquisitions. The company continues its current €300 million share buyback program and maintains a target leverage ratio of 1-2x net debt/EBITDA.
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