I'm not an insider but I am a professional trader/investor/analyst/company director in the PPG top 10.
My read is the new PPG CEO has been introduced to start the big M & A opportunities. This was a very slick move bringing him in as COO last year and now it just seems like promotion from within, gotta give it to Ruffy he is a Pro. The new PPG chair and CEO is a clear signal to me at least that corporate action is not far off and I don't mean a continuation of the little acquisitions that have been happening over the last 2-3 years.
PPG is basically controlled like a private company by 4 entities that represent about 70% of equity. I think Ruffy is most likely to expand PPG to gain market share in distribution and flexible product. He already has rigid product market share so is probably somewhat limited in that area in Australia at least.
It makes business sense to do this through PPG at least initially as there will be no market competition concerns. The slick change in PPG management would give confidence to any future significant M & A targets that integration will be well managed for their common interests and I don't mean this as disrespect to the former PPG management who have done a fine job.
PPG Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
