Akzo Nobel N.V.,stylised asAkzoNobel,is a Dutchmultinational companywhich createspaintsand performancecoatingsfor both industry and consumers worldwide. Headquartered in Amsterdam, the company has activities in more than 150 countries.[2]AkzoNobel is the world's third-largest paint manufacturer by revenue afterSherwin-WilliamsandPPG Industries.[3][4]

Akzo Nobel N.V.
Company typePublic
Euronext Amsterdam:AKZA
AEXcomponent
IndustryChemicals
PredecessorAkzo NV
Nobel Industries AB
Founded1994;30 years ago(1994)
HeadquartersAmsterdam,Netherlands
Area served
Worldwide
Key people
Products
BrandsDulux,Sikkens,Interpon, International, Awlgrip, Zweihorn, Chemchraft
RevenueDecrease10.668 billion (2023)[1]
Increase€1,029 million (2023)[1]
Increase€488 million (2023)[1]
Total assetsDecrease€14.558 billion (2023)[1]
Total equityDecrease€4.546 billion (2023)[1]
Number of employees
35,200 (2023)[1]
Websitewww.akzonobel

History

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AkzoNobel has a long history of mergers and divestments. Parts of the current company can be traced back to 17th-century companies.[5]

History and formation of Akzo

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Akzo was formed in 1969 as merger of Algemene Kunstzijde Unie (General Artificial Silk Union; AKU) and Koninklijke Zout Organon (Royal Salt Organon; KZO).[6]

The AKU was formed in 1929 when theVereinigte Glanzstoff-Fabriken(est. 1899) and Nederlandse Kunstzijdefabriek (ENKA, est. 1911) merged, forming Algemene Kunstzijde Unie (AKU). The latter faced, amongst others, technical problems in the manufacturing of synthetic fibers. Its founder,Jacques Coenraad Hartogs,turned to Dutch industrialistRento Hofstede Crullfor a solution for which Hofstede Crull provided the answer. They created a joint venture, theNV I.S.E.M.,whose successes and profits laid the foundation for the ENKA's subsequent acquisitions and mergers and which was eventually absorbed by the AKU in 1938.[7]

The other part of the merger, the KZO, was formed when Koninklijke Zout Ketjen merged with Koninklijke Zwanenberg Organon in 1967. The former was itself a merger of Koninklijke Nederlandse Zoutindustrie (KNZ) and Ketjen. The KNZ was formed in 1918 byKo Visas a salt producing company; a business that to this day plays an important role in AkzoNobel's activities.[6]The other part, Koninklijke Zwanenberg Organon, was formed when Zwanenberg's Fabrieken (est. 1887), a meat export factory based inOssmerged withOrganon,a pharmaceuticals company founded by Saal van Zwanenberg, also in Oss.[8]

After the merger of AKU and KZO, Akzo made a number of other critical acquisitions;Armour and Companyin 1970,[9]Levis Paints in 1985,specialty chemicalsdivision ofStaufferin 1987 and divested itspolyamidesandpolyestersplastics engineeringbusiness toDSMin 1992. In 1993, Akzo formed a joint venture with Harrisons Chemicals (UK) Ltd a subsidiary ofHarrisons & Crosfield.[10]

Oslo, Norway Factory
Barcelona, Spain Factory
Suffolk, UK Factory
Shanghai, China Factory

AkzoNobel formation

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In 1994 Akzo and Nobel Industries agreed to merge, forming Akzo Nobel, with the new combined entity having 20 business entities a number of divestments were made: Nobel Chemicals, Nobel Biotech and Spectra-Physics. In 1995 thePETresins business was sold to Wellman, Inc.. In 1996 the group sold the crop protection business toNufarm.In 1998 the company acquired industrial coatings and in synthetic fiber companyCourtaulds,later divesting Courtaulds industrial coatings and Daejen Fine Chemicals. Courtaulds was merged with Akzo Nobel Fibres forming Acordis, which in December 1999 was divested toCVC Capital Partners.In 1999 the company acquired the pharmaceutical business of Kanebo.[11]

In the early 2000s the company began another wave of divestitures, first in 2000 with its stake inRovin'sVCMandPVCbusiness toShin-Etsu Chemical.In 2001 divestsADCoptical monomers business toGreat Lakes Chemical,in 2002 its printing inks business, in 2004 its catalyst business toAlbemarle Corp.,in 2005 its Ink & Adhesive Resins toHexionand UV/EB Resins to Cray Valley, in 2007 its Akcros Chemicals to GIL Investments. In 2006 the group acquired Canadian decorative and industrial coatings company, SICO Inc. and a year later Canadian industrial coatings company, Chemcraft International, Inc.[12]

In 2007Organon Internationalwas sold toSchering-Ploughfor €11 billion and AkzoNobel delisted its shares from the USNASDAQstock market. In 2008 Crown Paints was sold in a management buyout.[13]

In December 2012, AkzoNobel agrees to sell its North American Architectural Coatings business toPPG Industriesfor $1.1 billion.[14]

Acquisition of Imperial Chemical Industries (ICI)

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In 2008 AkzoNobel acquired BritishImperial Chemical Industries(ICI) for $15.8 billion.[15]

ICI can trace its history back to four British-based chemical companies;British Dyestuffs Corporation,Brunner, Mond & Company,Nobel Explosivesand theUnited Alkali Company.[16]which merged in 1926, forming ICI. A year later, the newly merged entity employed over 33,000 employees in five main product areas: alkali products, explosives, metals, general chemicals, anddyestuffs.In 1933 the company developedpolyethylene,which is later patented and sold as an insulating material. In 1986 focusses to paint and specialty products with the purchase ofBeatrice's Chemicals Division and Glidden Paint.[17]

In 1993 ICI demerged its bioscience business, splitting into two the publicly listed companies: ICI andZeneca.The latter would later go onto merge withAstra AB,forming the current pharmaceutical company,AstraZeneca.[18]

In April 2008Henkelacquired from AkzoNobel the adhesive part of National Starch[19]and in June 2010, AkzoNobel divested the starch part of National Starch business toCorn Products International.[20]

Attempted acquisition by PPG Industries

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In March 2017,PPG Industrieslaunched an unsolicited takeover bid of €20.9 billion, which was promptly rejected by AkzoNobel's management.[21]Days later, PPG again launched an increased bid of €24.5 billion, which was again rejected by AkzoNobel's management.[22]A number of shareholders urged the company to explore the offer and subsequent negotiations.[23][24]In April, activist investor, Elliot Investors' called for the removal of ChairmanAntony Burgmansfollowing Akzo's refusal to submit to discussing with PPG. Elliott, which has a 3.25% stake in the company, claimed it was one of a group of investors that met the Dutch legal threshold of 10% voting-share support, which is needed to call an extraordinary meeting to vote on a proposal to remove Burgmans.[25]On 13 April, Templeton Global Equity said it was among another group of investors calling for an extraordinary meeting of AkzoNobel shareholders to discuss Burgmans continued tenure as Chairman.[26]Later, in the same month Akzo outlined its plan to separate its chemicals division and pay shareholders €1.6 billion in extra dividends, in order to attempt to hold-off PPG.[27][28]The new Akzo strategy was dismissed by PPG, which claimed that their offer represented better value for shareholders,[29][30]supported by activist Akzo shareholder, Elliot Advisors.[31]On 24 April, a day before Akzo's annual meeting of shareholders, PPG increased its final offer by approximately 8% to $28.8 billion (€26.9 billion, €96.75 per share)—with Akzo's share pricing rising 6% to a record price of €82.95 per share.[32]Akzo shareholder,Columbia Threadneedle Investments,urged the company to open dialogue with PPG,[33]whilst PPG claimed that the deal would add to earning within its first year.[34]Days later one of the UK's largest pension scheme investors, Universities Superannuation Scheme (USS), urged Akzo to engage with PPG.[35]On 2 May,Reutersrevealed that the supervisory board of Azko was meeting to discuss how to deal with PPGs third offer, still maintaining it did not value the company highly enough.[36]

In early May, Akzo again rejected PPGs bid, citing the deal still undervalued the company, as well as potentially facing antitrust risks, and not addressing other concerns such as "cultural differences". Under Dutch company law, PPG had to then decide to either make a formal bid or walkaway.[37]In early June, PPG chose to walk away from the potential deal.[38][39]As part of Akzo's defense to shareholders, many of whom pushed for the deal, chief executive Ton Büchner agreed to split Akzo in two and achieve increased financial targets.[40]Büchner stepped down as CEO in July 2017, citing health reasons. He was succeeded by Thierry Vanlancker, former chief of the company's chemicals division.[41]

Recent

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The company AkzoNobel is focused on paints and coatings. On October 9, 2018 Specialty Chemicals was re-branded as a new company, Nouryon, after acquisition by theCarlyle Group.[42]

International PaintLimited, owned by AkzoNobel were fined £650,000 and ordered to pay costs of £144,992 in a prosecution brought by theEnvironment Agencyfor allowing the banned highly toxic chemicaltributyltinto be released into the river Yealm estuary atNewton Ferrers.[43]

Organization

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Due to high revenues from the sales of its pharmaceutical business, AkzoNobel was the world's most profitable company in 2008.[44]

Decorative paints

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AkzoNobel markets their products under various brandnames such asDulux,Sikkens,Internationaland Interpon.[45]

Performance coatings

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AkzoNobel is a leading coatings company whose key products include automotive coatings, specialised equipment for the car repair and transportation market and marine coatings. The coatings groups consist of the following business units:[46][47]

  • Decorative Paints
  • Marine and Protective Coatings
  • Automotive and Specialty Coatings
  • Industrial Coatings
  • Powder Coatings

Expancel

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Expancel is a unit producingexpandable microspheresunder the tradename "Expancel Microspheres" within AkzoNobel.[48][49][50][51]

Turnover and profit history

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Year Turn-over Profit
2023[52] €10.7 billion €488 million
2022[53] €10.8 billion €388 million
2021[54] €9.6 billion €859 million
2020[55] €8.5 billion €678 million
2019[56] €9.3 billion €555 million
2018[2] €9.3 billion €455 million
2017[57] €9.6 billion €511 million
2016[58] €14.2 billion €970 million
2015[47] €14.9 billion €979 million
2014[59] €14.3 billion €546 million
2013 €14.59 billion €724 million
2012 €15.39 billion € -2.169 billion
2011 €15.70 billion €541 million
2010[60] €14.64 billion €754 million
2009[60] €13.03 billion €285 million
2008 €15.42 billion € -1.08 billion
2007 €10.22 billion €410 million
2006 €10.02 billion €715 million
2005 €13.00 billion €961 million
2004 €12.83 billion €945 million
2003 €13.05 billion €602 million
2002 €14.00 billion €818 million
2001 €14.11 billion €671 million

See also

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References

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  3. ^"Akzo Nobel and PPG Industries strengthen their businesses with minor acquisitions".
  4. ^"Top manufacturers of paints, coatings, adhesives, and sealants in 2022 | Coatings World".
  5. ^Tomorrow's answers today, AkzoNobel 2008Archived27 September 2011 at theWayback Machine,ISBN978-90-902288-3-9,English version
  6. ^ab"Wat is AkzoNobel?"(in Dutch). NPO.Retrieved4 December2020.
  7. ^History of theNV I.S.E.M.:("Enka Historisch Museum Ede - de Internationale Spinpot Exploitatie Maatschappij".Archivedfrom the original on 2 March 2017.Retrieved1 March2017.); Jaap Tuik.Een bijzonder energiek ondernemer - Rento Wolter Hendrik Hofstede Crull (1863-1938): pioneer van de elektriciteits voorziening in NederlandZutphen, Netherlands: Historisch Centrum Overijsssel & Walberg Pers, 2009. pp: 137- 138ISBN978-90-5730-640-2
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