Akzo Nobel sets 2 Jan date to complete ICI sale

01 October 2007 09:34  [Source: ICIS news]

LONDON (ICIS news)--Dutch coatings company Akzo Nobel expects to complete the £8bn ($16.3bn/€11.5bn) purchase of the UK's ICI on 2 January 2008, the company said in a statement to its shareholders on Monday.

 

Akzo Nobel has released a circular to its shareholders outlining the purchase of ICI and the sale of Organon Biosciences to Schering-Plough.

 

Management estimates that the operating cost savings and other synergies relating to the ICI paints business will deliver savings of €2.5bn ($3.6bn), Akzo Nobel added.

 

“Akzo Nobel intends to find a new owner for ICI’s Specialty Starch activities and plans to retain ICI’s Specialty Polymers business,” the circular said.

 

“Akzo Nobel group will benefit from a diversified and broad geographic presence, a significantly strengthened decorative coatings business and highly attractive platforms for growth in emerging markets,” the circular said.

 

Akzo Nobel has already signed an agreement with German adhesives producer Henkel to pay £2.7bn in cash to sell ICI’s adhesives and electronic materials business.

 

The sale of Organon Biosciences to Schering Plough for approximately €11bn in cash is expected to be “completed no later than the end of 2007”, the circular added.

 

($1 = £0.49/£1 = €1.44)

By: Lucy Craymer
+44 20 8652 3214

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