After submitting a binding proposal to acquire Tikkurila for €31.25 per share on January 28, 2021, AkzoNobel announced it no longer intends to pursue this acquisition, following a competing, higher, offer for Tikkurila.
Despite a strong cultural fit, AkzoNobel announced that the intended transaction no longer meets the company's criteria for superior value creation and therefore no longer intends to pursue the acquisition of Tikkurila.
"We have clear priorities and criteria for capital allocation, including investing for growth, paying dividends, conducting acquisitions, and carrying out share buybacks. The intended acquisition of Tikkurila can no longer compete with more attractive opportunities to create superior value for our shareholders and other stakeholders. Executing with discipline has been key to AkzoNobel's transformation into a company with higher profitability and strong free cash flow. This is working well for us and part of who we are", declared Thierry Vanlancker, CEO of AkzoNobel.
AkzoNobel will continue delivering on its capital allocation priorities, including a disciplined approach to strategically aligned, value creating, acquisitions. The company continues its current €300 million share buyback program and maintains a target leverage ratio of 1-2x net debt/EBITDA.