PPG Finalizes Tikkurila Deal

In an update to a story published inMP Recent News earlier this year, PPG (Pittsburgh, Pennsylvania, USA) announced that it received regulatory approval from the Federal Antimonopoly Service of Russia to acquire all shares of decorative coatings company Tikkurila (Vantaa, Finland).

With this regulatory formality completed, PPG can now complete its tender offer, which is set to expire on June 4, 2021. In a statement, PPG says it expects to complete the tender offer and close the transaction on or about June 10, 2021.

The European Commission, the Ministry of Economic Affairs and Employment of Finland, and the Agency for Protection and Development of Competition of the Republic of Kazakhstan have each granted approval of the tender offer. The European Commission’s merger control approval applies without conditions across the European Union, including Poland.

Completion of the tender offer remains subject to the valid tender of shares representing, together with shares otherwise held by PPG and its subsidiaries, more than 66.7% of the outstanding shares of Tikkurila, as well as additional customary conditions to completion.

As previously reported, the all-cash transaction was initially valued at €1.1 billion ($1.3 billion), including the assumption of debt and cash, with Tikkurila shareholders receiving €25 ($30.6) per share. PPG has since amended that offer so that Tikkurila shareholders will now receive €34 ($41.5) for each share of Tikkurila stock they own, for a total transaction value of approximately €1.5 billion ($1.8 billion).

Source: PPG, https://investor.ppg.com.