AkzoNobel in bidding war for Finnish paint manufacturer Tikkurila

The Dutch paint group AkzoNobel has made a total offer of 1.4 billion euros (31.25 euros per share) for producer Tikkurila. The Finnish company is also active in Sweden, Russia, Estonia, Latvia, Lithuania and Poland.

The turnover in 2019 was 564 million euros. AkzoNobel was 16 times bigger with a turnover of 9.3 billion euros.

Takeover battle

It is not at all certain that Akzo’s offer will succeed, because there is already another offer from PPG from the US. AkzoNobel offers more than PPG, which offers more than 1.2 billion euros (27.75 euros per share), but about 30 percent of the shareholders have already pledged its shares to the Americans. Furthermore, the board of Tikkurila supports the PPG offer.

In any case, investors in Tikkurila assume that AkzoNobel’s offer will be exceeded. Trade was halted this morning, but has now been picked up again. The price is above AkzoNobel’s offer.

Investors Akzo worried

AkzoNobel is not only dealing with PPG in the battle for Tikkurila. There may even be a third hijacker on the coast. PPG previously increased the amount of its own bid, because there would be another player who would also be interested.

However, that mysterious bidder has not yet made a public offer. In any case, it was not AkzoNobel, said AkzoNobel CEO Thierry Vanlancker.

Investors are not satisfied with AkzoNobel’s offer. AkzoNobel’s share price is about 2.5 percent lower. “I think this says enough about what investors think of a takeover battle,” says Corné van Zeijl, analyst at Actiam.

‘It is being fought over’

“This is one of the last players in Europe still available, at least of this format”, says Van Zeijl.

“PPG had already raised the offer, so it is being fought over. I don’t know how it will go, it depends on how badly they want Tikkurila.”

AkzoNobel wants to sell parts

“AkzoNobel will be well prepared,” says RTL Z stock exchange commentator Durk Veenstra. “They already see that if their offer is successful, they will have a large market position in a number of countries. AkzoNobel has already said that it is then ready to sell some of its own operations in those countries.”

AkzoNobel has already agreed with the Danish company Hempel that this company will then take over parts.

Akzo has already beaten PPG before

AkzoNobel and PPG also met four years ago. Then PPG wanted to take over AkzoNobel. Ultimately, that takeover attempt was rejected.

Vanlancker denies that AkzoNobel is now also bidding on Tikkurila to bother PPG.


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