The UK’s largest chemicals firm, which makes Dulux paint, unveiled a business-transforming deal today after agreeing to take on a key division of ICI for £410m (€593m).

Chemicals giant ICI today posted a 5% rise in profits as it increased prices in the face of higher energy bills and raw materials costs.

Dulux paint company ICI maintained a positive view on its business today after price rises helped it recover higher raw material costs.

Chemicals and paint group ICI today reported a good start to 2005, but warned of weak markets and further price increases.

Chemicals group ICI today branded its profit performance in 2003 “unsatisfactory”, but said the outlook for demand was encouraging.