Dulux’s brush off

Paint maker say no to new US bid

THE owners of paint giants Dulux have rejected a second takeover bid – warning it would trigger “significant” job cuts.

The Anglo-Dutch firm AkzoNobel claimed an increased £19.4billion offer from US rivals PPG was too cheap and added that the two businesses were badly matched.

It warned: “PPG provides no substantive commitments to employees, creating potential uncertainty for thousands of jobs worldwide.”

Akzo employ 46,000 people in 80 countries.

They have 3000 UK staff, with 191 Dulux Decorator Centres, plants in Ashington, Northumberland, and Felling, Gateshead, as well as sites at Deeside, Birmingham and their Slough HQ.

As well as Dulux, famed for their adverts featuring an old English sheepdog, the company also make the Cuprinol, Polycell, Hammerite and Sikkens brands.

Akzo chief Ton Büchner admitted the firm had slashed jobs in the past and “will continue to do so”.

Akzo claimed the takeover would lead to competition issues, forcing the sell-off of brands and businesses.

However, one of Akzo’s large investors, Elliott Advisors, urged the firm to open talks with PPG, saying they will attempt to oust the Dutch firm’s bosses if their demands are ignored.

Elliott, who hold more than a three per cent stake, said “most shareholders” wanted the firm to engage.

The move comes amid pressure on the UK government to tighten the rules on foreign takeovers. The weak pound in the wake of last year’s Brexit vote fuelled interest in buyouts of UK firms by overseas companies.

Japan’s SoftBank snapped up Cambridge-based microchip firm ARM Holdings.

But Marmite maker Unilever fought off a bid from Kraft Heinz.