Pittsburgh-based PPG Industries said it withdrew its proposal to buy Dutch paints, coatings and chemicals giant AkzoNobel in a €26.3 billion deal after a final attempt to engage AkzoNobel’s boards failed.

“We were hopeful throughout this process that AkzoNobel’s Boards would see the merits of our compelling proposal to combine our two great companies and create significant shareholder value and a more sustainable business for the future,” said Michael McGarry, PPG chairman and CEO.

“We strongly believe a combined company would create more opportunities and provide more benefits for our collective customers, employees, shareholders and society in general.

“We made a final attempt for engagement late last week and through a letter to AkzoNobel.

“In that letter, we addressed AkzoNobel’s stated commentary around value, certainty, timing and stakeholder considerations, and provided additional and specific commitments and assurances including a significant break-fee and an offer to negotiate a nominal price increase as part of an agreed transaction.

“However, AkzoNobel’s Boards have consistently refused to engage and did not respond to our call or letter. As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel at this time.”

Ton Büchner, AkzoNobel CEO, said: “We continue to focus on our business, pursuing our strategy of accelerating sustainable growth and profitability and creating two focused, high-performing businesses – Paints and Coatings and Specialty Chemicals.

“We believe this will lead to a step change in growth and long-term value creation for our shareholders and all other stakeholders.”