Akzo Nobel and ICI have reached agreement over the sale of the British company to the Dutch giant.
Under the terms of the transaction, ICI shareholders will receive 670p in cash for every ICI share.
The offer price values ICI at approximately £8 billion.
John McAdam, ceo of ICI, said: "Akzo Nobel has today made a compelling offer which delivers full value for ICI reflecting ICI's strong future growth prospects and strategic opportunities.
"The ICI board will be recommending shareholders accept the 670 pence cash offer from Akzo Nobel as it believes it to be in their best interests."
The acquisition was helped by Akzo Nobel entering into an agreement with Henkel to sell ICI's adhesives division and the electronic materials division, both of which form part of the National Starch business of ICI, for £2.7 billion by the end of the year.
Akzo said it expects to generate annual pretax cost savings of £190 million from ICI's paints business.
Ceo of Akzo Nobel, Hans Wijers, who has faced criticism from shareholders concerned at the price offered, said:
"I am delighted by this transaction which will be a transformational step in implementing our strategy."
He added that the new business will seek to create a leading global coatings and specialty chemicals company attractive to fast-growing markets in China and Latin America.
The spotlight has now turned on the two paint brands, which dominate the UK market – Crown and Dulux.
Speculation is mounting that Akzo may sell off its Crown brand, with a market share of 14%, in favour of investing in the market-leading Dulux brand (40%).