Dulux paint maker ICI has agreed to an €11.9bn takeover by Dutch chemicals group Akzo Nobel, it emerged today.
ICI is set to announce tomorrow that it has recommended a 670p a share offer from the maker of Crown paints, according to newspaper reports.
Even if the ICI board recommends the bid, Akzo still has to win over the support of its shareholders, with some said to be unhappy about the price of the deal, which they view as too expensive.
US-based hedge fund TPG-Axon, which holds a 3.5% stake in Akzo, has reportedly warned the Dutch group that it would not support an acquisition at this price.
However, Akzo is hoping that its agreement to sell ICI’s adhesives and electronic materials operations to German chemicals company Henkel, the maker of Persil and Theramed toothpaste, for €3.9bn will help alleviate investor concerns.