A potential merger between two of Stowmarket’s largest employers has been rebuffed for the third time, allaying fears over job losses at the town’s paint factories.

Ipswich Star: Signs for the PPG and AkzoNobel paint factories, Stowmarket. Picture: MATT REASONSigns for the PPG and AkzoNobel paint factories, Stowmarket. Picture: MATT REASON (Image: Archant)

The third offer from global paint and chemicals giant PPG was rebuffed by Dutch-owned AkzoNobel on Monday, May 8.

The two companies own the adjoining paint factories in Stowmarket, which were formerly entirely owned by ICI.

PPG framed their third offer as their final “friendly” bid for AkzoNobel, raising fears that a hostile takeover may now be pursued.

Despite promising to protect jobs in AkzoNobel’s specialist chemicals business, PPG have made no statement on whether paint factory jobs in Stowmarket and across Europe could be at risk.

AkzoNobel’s latest rebuff to PPG stated that the takeover “creates widespread anxiety and uncertainty for thousands of jobs across AkzoNobel’s 46,000-strong workforce”.

They said the proposal makes no commitments regarding the potential closure of factories and creates risks for employees, shareholders and customers. The AkzoNobel site in Stowmarket is known for making Dulux paints, while the PPG site manufactures automotive paints. Together they employ hundreds of people.

The merger plan has raised fears that PPG would seek to cut jobs in Stowmarket, due to both sites currently operating duplicate workforces. A number of AkzoNobel’s major shareholders have backed the takeover, going as far to call for the chairman of the company to be removed for his opposition to the sale. A statement from PPG said: “PPG is disappointed that AkzoNobel has once again refused to enter into a negotiation regarding a combination of the two companies, ignoring the best interests of its stakeholders, including long-term shareholders who overwhelmingly support engagement.

“PPG continues to believe its proposal is vastly superior in shareholder value creation and provides more certainty to employees and pensioners.

“The failure of the AkzoNobel boards to engage with PPG to fully evaluate and discuss PPG’s proposal reflects a continued lack of proper governance, and is another attempt to avoid a true comparison on stakeholder impacts.”