28 April 2009 21:44 [Source: ICIS news]
HOUSTON (ICIS news)--Dutch coatings producer Akzo Nobel has agreed to pay $550,000 (€424,000) to settle a US acrylics lawsuit - a legacy cost connected to its acquisition of Imperial Chemical Industries (ICI), a spokeswoman said on Tuesday.
Akzo Nobel was not named in the lawsuit, which alleged that four methyl methacrylate (MMA) and acrylics producers fixed prices in the US.
ICI was sued because it had once sold acrylics in the US, according to court documents.
Akzo Nobel was involved in the settlement because it bought ICI in 2008, said Heleen Vande Lustgraaf, spokeswoman for Akzo Nobel.
Akzo Nobel had no comments about the allegations in the lawsuit, since it involved events that took place years before the ICI acquisition, Vande Lustgraaf said. In fact, ICI had been out of the acrylics market for nearly a decade by the time Akzo Nobel bought the company.
In 1999, ICI sold its acrylics business to INEOS Acrylics (now Lucite), a company backed by private-equity firm Charterhouse Development Capital.
The settlement ensnared another company that was no longer involved with acrylics, US carbon-fibre producer Cytec Industries. During the period addressed by the lawsuit, Cytec had a 50% stake with Evonik in the companies' MMA joint venture, Cyro Industries.
Cytec sold its stake in Cyro in 2005
Cytec did not immediately return a call seeking comment.
($1 = €0.77)
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