Akzo Nobel N.V. has submitted a binding proposal to the board of directors of Tikkurila, having completed its due diligence on the company. The proposal relates to a tender offer for all the issued and outstanding shares of Tikkurila at an offer price of approximately $37.90 per share, representing a total equity value of around $1.7 billion.

According to a Nasdaq article, Tikkurila officials said the company would consider the offer, which beat a competing offer from PPG Industries.

On January 18, 2021, AkzoNobel announced it had made a comprehensive non-binding proposal to acquire Tikkurila and invited the company’s board of directors to enter into negotiations with a view to reaching agreement on a recommended voluntary public cash tender offer.

Conducting customary due diligence has confirmed the AkzoNobel view that clear synergies would be created from collective procurement capabilities, expanded production, and combined sales and distribution channels. The combination would deliver substantial value creation for shareholders and also create significant opportunities for future growth—both for the company and its employees—by providing customers with more innovative and sustainable solutions, according to the company.