Dutch chemicals group Akzo Nobel has agreed a deal to buy Britain's ICI for £8 billion (€11.8 billion) to boost its position as the world's biggest industrial coatings maker.
However, Akzo still has to secure shareholder support for the deal amid newspaper reports that at least one of its major investors, US fund TPG-Axon, is opposed to the deal.
Akzo said today it would pay 670 pence a share in cash for ICI, or 22 per cent above ICI's closing share price on June 15th, the day before it announced a bid approach from the Dutch group.
ICI rejected a 600-pence-a-share proposal from Akzo in June and then a further 650-pence-a-share offer last month after Akzo teamed up with German consumer goods group Henkel.
Henkel confirmed today that, conditional upon Akzo buying ICI, it had agreed to buy ICI's adhesives and electronic materials businesses for about £2.7 billion.