TimelineICI takeover deal finally closed

02 January 2008 12:48  [Source: ICIS news]

LONDON (ICIS news)--Akzo Nobel has completed its takeover of ICI. Here is a timeline of the £8bn ($16bn/€11bn) acquisition.

 

22 November 2006 - ICI divests flavours and fragrances unit Quest to Givaudan for ₤1.2bn, prompting speculation that the new slimmed-down, debt-free company could become a takeover target.

 

12 March 2007 - Akzo Nobel announces the €11bn sale of Organon, its pharmaceuticals business. ICI shares surge over 8% on Akzo potentially using the new war chest to fund a takeover bid.

 

3 April 2007 - ICI shares leap a further 8% as traders link ICI with a possible bid from US chemicals giant Dow Chemical. Reliance Industries of India and DuPont’s names are also thrown into the ring.

 

18 June 2007 - ICI rejects a ₤7.2bn, or 600p per share, takeover bid from Akzo Nobel, saying it has been undervalued. Analysts predicted counter-bids from other potential bidders which failed to materialise.

 

6 July 2007 - The UK’s Takeover Panel issues a “put up or shut up” order against Akzo Nobel, meaning the Dutch company must make an offer before 9 August or be restricted from bidding for another six months.

 

30 July 2007 - Akzo Nobel’s improved 650p per share offer is rejected by ICI. The British company said the proposal had failed to recognise ICI’s “full strategic value”. Henkel agree to but two of ICI’s businesses if the deal goes through.

 

1 August 2007 - The UK’s Daily Telegraph claims investment bank Lazard had been asked by Dow Chemical to assist in a counter bid. ICI refused to comment.

 

6 August 2007 - ICI receives a third bid from Akzo Nobel for 670p/share in cash, valuing it at around £8bn. ICI agrees to open its books to Akzo Nobel, indicating that the companies are moving closer to an agreement.

 

9 August 2007 - Deadline day. The Takeover Panel’s deadline is extended until Monday to help the two companies strike a deal.

 

13 August 2007 – ICI board accepts 670p per share, or ₤8bn, offer. The deal is expected to take effect during late November or early December.

 

Henkel agrees to buy ICI's adhesives and electronic materials division for ₤2.7bn in an on-sale agreement with Akzo Nobel.

 

5 November 2007Akzo Nobel shareholders vote in favour of the deal with a 78.65% majority.

 

6 November 2007 ICI shareholders approve the takeover with a 99% majority.

 

14 December 2007 – European Commission and Canadian Competition Bureau clear the deal, but Akzo Nobel is required to divest several decorative paints brands including Crown in the UK and Ireland.

 

2 January 2008 Akzo Nobel completes transaction, with Henkel taking control of ICI's adhesives and electronic materials businesses.

 

($1 = £0.50/€0.69)


By: Mark Watts
+44 20 8652 3214



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