PPG drops bid to buy Dulux owner AkzoNobel

US paint maker PPG has walked away from Dulux owner AkzoNobel after the Dutch firm rejected several informal offers.

PPG chief executive Michael McGarry said it had made a final offer for Akzo last week, but the firm did not respond.

"As a result, we believe it is in the best interests of PPG and its shareholders to withdraw our proposal to AkzoNobel," he said.

In April, PPG offered 26.9bn euros (£22.8bn) for Akzo.

This had improved on two previous bids, but Akzo again rejected it, saying it undervalued the company.

It also accused PPG of a "lack of cultural understanding of the brand" and said its own plans for growth better served shareholders.

PPG said it had promised additional commitments, including a significant break-fee, as part of its final offer.

It said it still believed a combined company would "create more opportunities" for customers, employees and shareholders.

Under Dutch securities rules, PPG cannot make another offer for Akzo for six months.

AkzoNobel shares fell sharply on the news before regaining ground to be almost flat in Amsterdam.

Some of Akzo's largest shareholders supported a deal, but investors had expected PPG's decision given Akzo Nobel's fierce opposition.

In April, Akzo put forward an alternative plan to the merger, promising to give shareholders 1.6bn euros in extra dividends.

It also said it would spin off its chemicals subsidiary, which represents a third of sales and profits.