Akzo Nobel increases ICI synergies target to €340m

22 April 2008 11:59  [Source: ICIS news]

LONDON (ICIS news)--Akzo Nobel expects to achieve annual synergies of €340m ($541m) for its acquisition of ICI – 20% higher than its original €280m forecast, it said on Tuesday.

 

The synergies would break down as €180m from decorative paints, €85m in corporate savings and €75m in procurement costs, said Akzo Nobel CEO Hans Wijers at the company’s annual general meeting.

 

The company said 85% of the synergies would be realised in the first three years.

 

Akzo Nobel completed an £8bn takeover of its coatings rival in January after ICI shareholders accepted a third bid from the Dutch company.

 

“Our transformation into a focused coatings and chemicals company is progressing well,” said Wijers. “Although trading conditions are challenging at the moment, with a strong currency impact, there is an ongoing trend of underlying growth in most of our businesses - in local currencies - especially in the emerging markets.”

 

The CEO added that Akzo Nobel would not use the ICI brand in future but would keep strong former-ICI brand names such as Dulux and Glidden.

 

($1 = €0.63)

By: Mark Watts
+44 20 8652 3214

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