London: Akzo Nobel NV has finalized a tentative deal that entails the takeover of Britain’s Imperial Chemical Industries PLC for $16.3 billion (Rs65,200 crore), after the British company rejected two earlier offers from the Dutch chemicals group.
Akzo and a German partner, Henkel KGaA, are conducting due-diligence on chemicals and Dulux paint maker Imperial Chemical, also known as ICI, that is expected to be completed within days. This was reported by the Wall Street Journal’s Europe edition.
Sources confirmed that talks were in the final stages of negotiations although ICI officials were not immediately available to comment on the reports.
If the review of ICI’s business and financial information goes well, the deal will be announced by an 9August deadline which has been set by British takeover regulators.
ICI last week rejected a sweetened $15.8 billion bid from Akzo, saying it “failed to recognize the full strategic value of ICI,” but added they remained in talks.
Akzo, whose brands include Crown Paints, wants to add ICI’s paint business to its own and plans to sell ICI’s adhesives business to German chemical company Henkel KGaA if the takeover occurs.
The Dutch company has struck an exclusivity deal with the German business over the sale, and says the tie-up would allow more cash to be returned to shareholders.