Amsterdam-based AkzoNobel termed the offer by Pittsburgh-headquartered PPG Industries an unsolicited, non-binding and conditional proposal.

The unsolicited proposal we received from PPG substantially undervalues our company and contains serious risks and uncertainties, AkzoNobel CEO Ton Buchner said in a news release. The proposal is not in the interest of AkzoNobels stakeholders, including its shareholders, customers and employees, and we have unanimously rejected it. Along with my colleagues on our boards, our executive team and our thousands of employees, I firmly believe that AkzoNobel is best placed to unlock the value within our company ourselves.

The company said it will consider various alternative ownership structures for the specialty chemicals business, including, but not limited to, establishing an independent listed entity. AkzoNobel said that the separation would allow it to continue to build and accelerate its market-leading positions across a range of market segments. The company has a diverse portfolio of chemistries applicable to the lubricant additives industry. Its amide, amine and alkoxylated amine product lines of cationic surfactants are used as friction modifiers, corrosion inhibitors, grease thickeners, detergents, emulsifiers and coupling agents.

In its own news release, PPG Industries described its offer as an attractive and comprehensive proposal to AkzoNobel N.V., claiming the combination of the two companies would deliver an enhanced global player in paints, coatings and specialty materials, combining complementary products, technologies and geographies, and creating a stronger competitor in a highly competitive global marketplace. PPG also claimed the combination would offer a broader line of products and technologies cost-effectively to a more diverse customer base.

Founded in 1883, PPG Industries is a global supplier of paints, coatings, optical products, specialty materials and fiber glass.