The Pittsburgh-headquartered group has increased its all-cash offer to €34 per share, equating to a total transaction value of about €1.52 billion, up from its previous offer of €1.24 billion and beating AkzoNobel’s offer of €1.4 billion.

Certain of Tikkurila’s major shareholders, representing approximately 29.34% aggregate ownership, have unconditionally agreed to sell their shares to PPG.  As well as stumping up more cash, PPG has also enhanced other terms and conditions, including lowering the tender acceptance threshold to 66.7% from 90%.

The US group also expects to be able to close on the deal as soon as March or early in the second quarter, ahead of Tikkurila’s annual peak selling season in the second and third quarters. This timescale, said PPG, is significantly faster than AkzoNobel’s proposal, which is reliant on selling its decorative paints business in the Nordics and Baltics to get regulatory clearance.

“Our improved offer reflects further analysis of the potential transaction synergies and the confidence we have in the value that can be realized by joining our two companies,” said PPG chairman and CEO Michael McGarry.

Tikkurila’s board of directors has unanimously recommended that shareholders accept PPG’s latest offer, saying it is more beneficial to the company than the competing offer from AkzoNobel in terms of price, certainty, timing and stakeholder considerations.

The tender offer for all outstanding Tikkurila shares began on Jan. 15 and is expected to expire on Mar. 15, unless extended by PPG.

Author: Ellaine Burridge, Freelance Journalist