Akzo Nobel N.V. (ENXTAM:AKZA) made an offer to acquire Tikkurila Oyj (HLSE : TIK1V) for €1.4 billion from a group of sellers on January 18, 2021. Akzo Nobel N.V. entered into binding proposal to acquire Tikkurila Oyj for €1.4 billion from a group of sellers on January 28, 2021. Under the terms, €31.25 per share will be paid as a part of the transaction.

The transaction will be financed using existing cash and credit lines. To obtain merger clearance and ensure deal certainty for Tikkurila and its shareholders, AkzoNobel has agreed with Hempel key terms for the sale of assets, including the decorative paints business of AkzoNobel in the Nordics and the Baltics. As of February 4, 2021, competing bidder has increased the offer price to €34 per share.

The completion of the offer would be subject to customary conditions including reaching a 90% acceptance level and obtaining required regulatory approvals, due diligence investigation, entering into a combination agreement, approval by supervisory Board of Akzo Nobel, Board of Directors of Tikkurila recommending to the shareholders to accept the offer, obtaining an irrevocable undertaking from Oras Invest Oy to accept the potential offer and the transaction not being conditional on financing. As on January 28, 2021, AkzoNobel completed due diligence for the Tikkurila Oyj. If negotiations advance quickly, a potential offer could be announced in February and the transaction completed as soon as possible in 2021.

The transaction is expected to be completed during 2021. The transaction is expected to be EPS accretive in 2022. HSBC and JPMorgan acted as financial advisors and De Brauw Blackstone Westbroek N.V. and Roschier, Attorneys Ltd. acted as legal advisers to Akzo Nobel in the transaction.