Dulux owner AkzoNobel rejects $21bn takeover bid

The Dutch owner of Dulux has been forced to hive off its speciality chemicals business to rebuff a hostile $21 billion (£17.2 billion) takeover bid from American paints giant PPG Industries.

The rhetoric in AkzoNobel’s robust rejection of the bid resembles that of Anglo-Dutch consumer goods group Unilever when it slammed Kraft Heinz’s £115 billion approach last month.

Akzo’s chief executive Ton Büchner said PPG’s bid was “unsolicited” and contains “serious risks and uncertainties” for employees. Akzo, which also owns DIY adhesive Polyfilla, employs around 3300 people in the UK.

“The proposal is not in the interest of AkzoNobel’s stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it,” he added.

Akzo, which is considering listing its speciality chemicals business, said it did not “entertain” talks with PPG. Its shares jumped €9.25, or 14%, to €73.67.