Dulux victory secures 3,300 jobs in Britain
As Americans abandon bid for paint maker . . .
THE boss of Dulux last night issued a vote of confidence in Britain after the paint maker finally fought off a takeover from an American predator.
On a dramatic day for Dulux parent company Akzo Nobel and its workers, chief executive Ton Buchner said he was committed to creating more jobs in the UK.
The comments, which will be welcomed by the Dulux workforce in Britain, came after Akzo emerged victorious from a bitter three-month bid battle with US rival PPG.
Pittsburgh-based PPG dropped its pursuit yesterday after a lastditch attempt to strike a deal.
The move secured the future of 3,300 British Akzo workers spread across the North East, Glasgow, Suffolk and the Midlands who have been employed by the firm since it took over the paints and coatings division of British chemicals giant ICI in 2008.
Buchner said that Akzo, which is now pursuing its own growth strategy, would expand in the UK as it seeks to tap into its key research and development facilities in Gateshead.
He said that the plans could include more jobs in the UK.
Tony Burke, Unite assistant general secretary, said: ‘This is very positive news as it finally puts to bed speculation about Akzo Nobel’s future. We look forward to working with the management in a positive fashion to secure a prosperous future for the company and its workforce.’
Akzo and PPG have been at loggerheads since March after the Dutch firm rebuffed £18.1bn, £19.3bn and £22.5bn offers. The move sparked a shareholder uprising as investors, led by billionaire Paul Singer’s vulture hedge fund Elliott Advisors, called on Akzo to hold talks.
PPG made a last-ditch attempt to bring Akzo to the negotiating table on Monday in a letter to chairman Antony Burgmans.
It offered to increase its £22.5bn offer and pay a £522m break-up fee if regulators rejected the deal. But Akzo said it didn’t receive the letter till late afternoon on Tuesday and had responded saying it would consider the offer and provide feedback.
It came too late for PPG which had until yesterday to make its intentions known, as Dutch law required. PPG also failed to have its deadline for a decision extended beyond June 1.
Michael McGarry, chief executive of PPG, said: ‘Akzo Nobel’s boards have consistently refused to engage so we believe it is in the best interests of PPG and its shareholders to withdraw.’
Akzo is now ploughing ahead with a growth strategy, which involves separating its chemicals business from its paints and coatings arm. PPG could come back with another offer in six months.