Akzo Nobel CEO quits due to illness amid activist pressure

LONDON: Akzo Nobel CEO Ton Buechner resigned unexpectedly for health reasons amid the pressure of battling activist investor Elliott Management and the threat that rival-turned-suitor PPG Industries could return with another takeover attempt later this year.

The Dutch maker of Dulux paint and chlorine moved quickly to appoint specialty chemicals head Thierry Vanlancker as his successor, effective immediately, according to a statement from the Amsterdam- based company on Wednesday. It’s a meteoric rise for the former DuPont Co executive, who joined Akzo Nobel only last year after overseeing the spinoff of pigment maker Chemours from the US company.

The clock is ticking for Vanlancker — just as it was for Buechner — as the company pledged to stick to a planned strategy of exiting specialty chemicals. Buechner and Chairman Antony Burgmans’s refusal to engage with PPG over its $29.5 billion offer takeover angered some investors, with Elliott taking its push for talks to court in the Netherlands.

PPG pulled its bid on June 1, saying it was in its best interests “at this time”. Under Dutch takeover law, it has to wait six months before making another move. “After rejecting PPG’s takeover offer and the ongoing attack of activist investors afterwards, Akzo’s management is under massive pressure to deliver value creation,” said Markus Mayer, an analyst at Baader Bank.