Essential reading for retailers and suppliers in the home improvement market

'Compelling offer' too strong for ICI to reject

Published: 13 August 2007
Akzo Nobel and ICI have reached agreement over the sale of the British company to the Dutch giant.
'Compelling offer' too strong for ICI  to reject
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%).


Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


What would help you maximise sales of hardware & tools?





Latest reader comments

re: A guide to construction safety for home builders

Daniel Wood
Safety should always be the first priority. If followed properly, these precautions are all we need to tackle all unwanted accidents. I ...

re: Further Homebase closures ahead

Shaun Collorick
Cheltenham homebase has closing down signs outside, but not Gloucester homebase.... Yet!...

re: B&Q sales slide, as Screwfix decision to exit German market costs millions

B&Q bob
No surprises from us on the shopfloor management paralysed by fear of jobs and to weak to take chances so bumble around. Ranges boring, and ...

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl
I HOPE GRAHAM BELL THE NEW CEO OF B&Q GETS TO GRIPS OF THE COMPANY VERY SOON.MY WIFE WENT FROM SHADOXHURST TO GILLINGHAM TO GET SOME ...

Most read stories