AkzoNobel set to Divest its Chemicals Business
Netherlands: Dutch chemicals company AkzoNobel denied the takeover offer from PPG Industries and plans to divest its chemicals business as a part of its growth strategy. The company has formed project teams to detach its specialty chemicals business within 12 months.

The move will result in more returns to the shareholders and the divestment is expected to create chemicals business profit margin to reach up to $ 1 billion.

“The industry-leading performance and outlook of our specialty chemicals business gives us the confidence to return proceeds to shareholders in advance of the separation. In addition, we see extensive growth momentum in our paints and coatings business, which we expect to keep growing faster than market rates, allowing us to improve our long-term financial guidance. Now is the right time to create two focused, high-performing businesses. This strategy will create substantial value for shareholders with significant less risks and uncertainties compared to alternatives,” said Ton Buchner, CEO, AkzoNobel.

The company is also planning investment in R&D to retain innovation and new product development. Furthermore, the company announced to keep working on its commitment to sustainability by using 100 percent renewable energy and becoming carbon neutral by 2050