Potential PPG targets include Kelley-Moore Paint and Brazil's Suvinil, a division of BASF SE (BASFY) , according to UBS.
However, the possibility remains that PPG could decide to make another run at Akzo Nobel. Under Dutch law, PPG can bid again in six months.
"PPG continues to covet Akzo," said Kevin McCarthy, an analyst at Vertical Research Partners. "One could argue that separating chemicals makes Akzo more attractive to PPG."
Akzo said the separation of its specialty chemicals business from its paints and coatings unit would take place within the next 12 months.
The company reportedly intends to pursue a dual-track process to have the option to either spin off the business as a separately listed entity or sell it outright.
"We believe this plan creates superior value" to the PPG offer, Akzo Chief Executive Ton Büchner said. "It has significantly less uncertainty."