AkzoNobel no longer pursuing Finland’s Tikkurila

Akzo announced in January that it had proposed to buy Tikkurila for €31.25 a share, valuing the business at €1.4bn and trumping a previous offer from US paint company PPG Industries.

However, the company said it no longer intends to pursue the acquisition.

"Despite a strong cultural fit - and more synergies than any other combination with Tikkurila - the intended transaction no longer meets AkzoNobel’s criteria for superior value creation," it said.

Chief executive officer Thierry Vanlancker said: "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."

The company said it will continue delivering on its capital allocation priorities, including "a disciplined approach to strategically aligned, value-creating, acquisitions".