Prizes & Awards

2021 The Case Centre Best-selling Case in Economics, Politics and Business Environment


The case covers events leading to the hostile bid for AkzoNobel by PPG in 2017, the market response that it prompted, and AkzoNobel’s takeover defenses including the divestment of a business area and large cash payout. Various scenarios (as a standalone, after divestiture and after a takeover with synergies) are considered for the valuation of AkzoNobel, as is the rationale behind the various takeover bids by PPG. The role of activists in triggering the takeover process is highlighted. Alternative payout mechanisms (capital repayment, dividend payment, share buyback) are discussed.

Teaching objectives

Students learn how to value companies under different scenarios (as a standalone, after a divestiture and after a takeover with synergies) and to interpret market responses to various corporate actions. The case illustrates various takeover defenses, the role of activists, and the dilemma of making a hostile bid in countries where “maximizing stakeholder value” is the cornerstone of governance. It provides the opportunity to discuss different payout mechanisms: dividends vs share buyback, and the less common “capital repayment”.

  • Takeovers
  • Hostile bids
  • Takeover defenses
  • Company valuation
  • Activists
  • Payout policy
  • Stakeholder value versus shareholder value
  • AkzoNobel
  • PPG
  • Q31819