AkzoNobel has rejected a $22.1 billion takeover by the world's largest paint company.

Akzo Nobel has rejected a takeover bid from PPG, the world's largest
-
," for $22
.1bn.
the afternoon of March 9, Beijing time, AkzoNobel issued a statement saying that PPG's acquisition greatly underestimated the value of AkzoNobel and was not in the interests of shareholders and customers. AkzoNobel confirmed that PPG Industries Group's acquisition of AkzoNobel was valued at 54.00 euros ($57) per share in cash plus 0.3 PPG industrial shares plus 0.3 PPG shares. According to the Wall Street Journal, the total amount of the acquisition was 20.9 billion euros ($22.1 billion).
, AkzoNobel also said the company was considering strategic options to split its specialty chemicals business. As part of the spin-off, AkzoNobel will consider alternative equity structures for the specialty chemicals business, including, but not limited to, the creation of a separate listed entity.
AkzoNobel's Specialty Chemicals business, which had sales of 4.8 billion euros in 2016, plans to continue to build and strengthen its leading position in various market segments through a split.
statement, AkzoNobel's chief executive, Tony B?chner, stressed that AkzoNobel had not engaged in any dialogue with PPG and had not proposed or accepted any dialogue.
comes after foreign media such as Bloomberg and the Financial Times quoted people familiar with the matter as saying PPG was in the process of making a potential deal with AkzoNobel.
PPG and AkzoNobel are two of the largest companies in the coatings industry, with products ranging from iPhone protective coatings to

coatings. PPG acquired AkzoNobel's North American building coatings and coatings business in 2012 for $
.05 billion
2012.
PPG is based in Pittsburgh, Pennsylvania, and is valued at about $25.9 billion. With 156 plants worldwide producing paints, specialty materials and fiberglass, PPG is the world's largest manufacturer of automotive and aerospace coatings and the second largest in the construction and packaging market, according to its website. PPG also provides nuclear-grade coating protection systems for nuclear power plants, and most of the nuclear-grade protective coatings at Daya Bay, China's first commercially operated nuclear power plant, come from PPG.
, based in Amsterdam, the Netherlands, is the largest chemical company in the Netherlands and a global chemical giant with a market capitalisation of about $17 billion. AkzoNobel is Europe's largest supplier of coatings and the world's largest manufacturer of protective and marine coatings. Its portfolio spans basic chemicals, from chlorine-related products to skin cream formulations and paints used in F1 racing cars, and Dorothy, the commonly used architectural decorative paint, is also owned by AkzoNobel.
recent mergers and acquisitions in the coatings industry may be one reason PPG is interested in acquiring AkzoNobel. Sherwin-Williams
Coatings
plans to buy Valspar Coatings for about 9.92 billion euros, a acquisition that will challenge PPG's current position as the world's largest paint producer in the coatings industry. Meanwhile, Germany's Evo
AG has agreed to buy a $3.8bn coating additives business from American company Air Products and Chemicals.
has yet to make any announcement on the deal, and it is unclear whether PPG will insist on a takeover of AkzoNobel.
PPG may also face political pressure if it wants to continue its bid for AkzoNobel, as the Netherlands becomes increasingly wary of hostile takeovers of domestic companies.
Earlier, the Financial Times said the Dutch finance minister, Jeroen Dijsselbloem, said on March 7th local time that the government should have sufficient powers to allow domestic companies to take steps to prevent hostile takeovers by overseas investors in the event of a breach of national interests. When Kraft Heinz made an offer to Unilever, Dutch Prime Minister Mark Rutte said he would review the pros and cons of the deal for the Netherlands. Unilever later rejected the $143 billion offer, and Kraft Heinz withdrew its offer.