EC approves Akzo purchase of ICI

Dutch chemical group Akzo Nobel won conditional approval from the European Commission today for its £8 billion sterling (€11.…

Dutch chemical group Akzo Nobel won conditional approval from the European Commission today for its £8 billion sterling (€11.3 billion) acquisition of Britain's ICI.

The EU executive said Akzo had agreed to divest activities in the United Kingdom, Ireland and Belgium as well as a shareholding in the adhesives manufacturer Purbond.

The commission said its investigation had initially found the deal posed serious competition problems for the decorative coatings markets in Britain, Ireland and Belgium.

It also found problems across the 30-nation European Economic Area in the market for industrial adhesives used in engineered wood.

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In Britain and Ireland, Akzo will sell essentially all of its decorative coatings activities.

The deal between Akzo and Imperial Chemical Industries was approved by shareholders in early November and will create the world's biggest paint maker.