EC clears Akzo ICI takeover, orders coatings sales

14 December 2007 10:30  [Source: ICIS news]

LONDON (ICIS news)--The European Commission and Canadian Competition Bureau on Friday cleared Akzo Nobel’s acquisition of ICI, with the Dutch company committing to several coatings divestments to meet competition requirements.

 

Akzo Nobel is required to sell several decorative coatings businesses in the UK, Ireland, Belgium and Canada which have combined revenues of  €300m ($436m) in 2006.

 

“We will be making every effort to ensure that these excellent businesses are transferred to the most appropriate new owners that will build on the successes that these activities have already achieved,” said Akzo Nobel CEO Hans Wijers.

 

In the UK and Ireland, Akzo Nobel is committed to divesting manufacturing and warehouse sites in Darwen, Hull, Warrington, Dublin and Belfast, along with its Crown Decorator Centre network and the Crown, Crown Trade, Berger, MacPherson, Permoglaze and Sandtex brands.

 

The company has also committed to granting a licence to the buyer for the use of its Sadolin brand in the UK and Ireland for a five-year period.

 

In Belgium, Akzo Nobel said it would divest its DeKeyn and Linitop brands, and a five-year licence for Sadolin.

 

Canadian divestments would include a factory in Etobicoke, Ontario, along with its Para and Crown Diamond brands.

 

In November, shareholders from both Akzo Nobel and ICI voted in favour of the £8bn ($16bn/€11bn) acquisition, creating the world’s largest decorative coatings company.

 

The takeover is expected to be completed on 2 January.

 

($1 = €0.68/$1 = £0.49)

By: Mark Watts
+44 20 8652 3214

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