Essential reading for retailers and suppliers in the home improvement market

'Compelling offer' too strong for ICI to reject

Published: 13 August 2007
Akzo Nobel and ICI have reached agreement over the sale of the British company to the Dutch giant.
'Compelling offer' too strong for ICI  to reject
Under the terms of the transaction, ICI shareholders will receive 670p in cash for every ICI share.

The offer price values ICI at approximately £8 billion.

John McAdam, ceo of ICI, said: "Akzo Nobel has today made a compelling offer which delivers full value for ICI reflecting ICI's strong future growth prospects and strategic opportunities.

"The ICI board will be recommending shareholders accept the 670 pence cash offer from Akzo Nobel as it believes it to be in their best interests."

The acquisition was helped by Akzo Nobel entering into an agreement with Henkel to sell ICI's adhesives division and the electronic materials division, both of which form part of the National Starch business of ICI, for £2.7 billion by the end of the year.

Akzo said it expects to generate annual pretax cost savings of £190 million from ICI's paints business.

Ceo of Akzo Nobel, Hans Wijers, who has faced criticism from shareholders concerned at the price offered, said:

"I am delighted by this transaction which will be a transformational step in implementing our strategy."

He added that the new business will seek to create a leading global coatings and specialty chemicals company attractive to fast-growing markets in China and Latin America.

The spotlight has now turned on the two paint brands, which dominate the UK market – Crown and Dulux.

Speculation is mounting that Akzo may sell off its Crown brand, with a market share of 14%, in favour of investing in the market-leading Dulux brand (40%).


Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

Latest reader comments

re: Latest update on Green Homes Grant and implications for homeowners and landlords

John Hart
After applying for a green homes how long will it take for a decision? thanks...

re: SX Rainproof Exterior Caulk

Wally
I need the exterior sx rain resistant caulk! Can't get it anywhere so please help! How can I order it? Need it yesterday...

re: BCT can replicate any material in a ceramic tile

Christina Tiritanou
Not sure if you can help as I require a tile which has the measurements of 6”x 6”? Thank you....

re: Latest update on Green Homes Grant and implications for homeowners and landlords

colin thompson
SarahVery clear and helpful information.Thanks...

Most read stories