Akzo Nobel nets ICI

Arnhem, The Netherlands -- Akzo Nobel NV is to acquire Imperial Chemical Industries PLC in a 670p-per-share deal which values the UK group at around £8 billion. In a linked move, the Dutch group has agreed to sell on National Starch -- comprising ICI’s Adhesives and Electronic Materials divisions -- to Henkel for £2.7 billion.

The deal will create “a global leader in coatings and one of the largest specialty chemicals companies in the world with complementary brands, assets and skills, and leading positions in attractive specialty chemicals markets,” Akzo Nobel said in a 13 Aug announcement.

Akzo Nobel added that it expects to achieve operating cost savings of £189 million in relation to the ICI paints business as well as synergies from increased sales across the combined portfolio.

"We will create a leading global coatings and specialty chemicals company with a diversified geographic presence and well developed access to fast-growing markets in Asia- Pacific, particularly China and Latin America,” said Hans Wijers, CEO of Akzo Nobel.