PPG chief executive Michael McGarry said the United States company had been "hopeful" AkzoNobel "would see the merits of our compelling proposal to combine our two great companies and create significant shareholder value".
PPG made a final attempt for engagement with AkzoNobel late last week, but AkzoNobel's boards did not respond to outreach efforts.
AkzoNobel shares fell more than 1.3% immediately following the decision and were changing hands at €73.60 each at 10:35 BST but have risen some 14.65% since news of PPG's original interest was first revealed on March 8.
"We continue to focus on our business, pursuing our strategy of accelerating sustainable growth and profitability and creating two focused, high-performing businesses - paints and coatings and specialty chemicals", said Ton Büchner, AkzoNobel CEO. An Amsterdam court on Monday blocked attempts by a group of AkzoNobel shareholders who sought to oust its supervisory board chairman.
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"By contrast, AkzoNobel has outlined a compelling strategy to accelerate growth and value creation which we believe will deliver significant long-term value for our shareholders and all other stakeholders".
The Pittsburgh company's third and final bid for AkzoNobel was a cash-and-stock deal worth about $28.8 billion.
In April, Akzo put forward an alternative plan to the merger, promising to give shareholders 1.6bn euros in extra dividends.