Dulux maker Akzo Nobel confirms 1.4 billion-euro bid for Tikkurila

FILE Photograph: Cans of Dulux paint, an Akzo Nobel manufacturer, are noticed on the shelves of a hardware store in the vicinity of Manchester, Britain, April 24, 2017. REUTERS/Phil Noble/File Photograph

(Reuters) – Dutch paints and coatings maker Akzo Nobel on Thursday verified its 1.4 billion-euro ($1.7 billion) offer for Finland’s Tikkurila, following beating a U.S. rival’s provide last week.

The Dulux paint maker stuck to the 31.25 euro per share non-binding proposal it designed last 7 days, topping Pittsburgh-based PPG’s previously offer by 13%.

Tikkurila responded by expressing it will take into account Akzo’s provide.

In a assertion, Akzo stated that “clear synergies would be produced from collective procurement capabilities, expanded generation, and blended sales and distribution channels.”

Analysts have questioned the timing of Akzo’s present, declaring it could be caught in a bidding war.

“We assume Akzo is the natural acquiror given company overlap with Tikkurila and should really be capable to pay back a larger selling price than PPG thanks to larger opportunity synergies,” mentioned Morningstar analyst Rob Hales, adding it would most likely appear down to how badly PPG would like the deal.

The Amsterdam-dependent business, which mentioned it does not at this time maintain any shares in the enterprise, would expect to comprehensive the deal this year.

($1 = .8247 euro)

Reporting by Sarah Morland in Gdansk Enhancing by Jan Harvey and Matthew Lewis