Akzo Nobel: details of proposed ICI acquisition and Organon BioSciences divestment
Akzo Nobel N.V. has published the agenda and accompanying Shareholders' Circular for next month's Extraordinary General Meeting of Shareholders.
The Circular relating to the EGM explains that, subject to the approval of the shareholders of Akzo Nobel and ICI, and certain other conditions precedent, completion of the ICI deal is currently expected to take place on January 2, 2008.
Details are also provided regarding the following:
Cost synergies and additional benefits of ICI acquisition
Management estimates that the operating cost savings and other synergies relating to the ICI paints business will result in a total post-tax net present value benefit of approximately EUR 2.5 billion after implementation costs. In addition to the pre-tax operating cost savings of EUR 280 million per annum announced on August 13, this figure includes preliminary assessments of further synergies amounting to a post-tax net present value benefit of approximately EUR 375 million.
Update on strategic review of Specialty Starches and Specialty Polymers
Akzo Nobel intends to find a new owner for ICI's Specialty Starches activities and plans to retain ICI's Specialty Polymers business.
Update on Organon BioSciences transaction with Schering-Plough
On March 12, 2007, Akzo Nobel announced that it had received an offer for Organon BioSciences from Schering-Plough for approximately EUR 11 billion in cash. The consultation procedures with the relevant employee representative bodies have been completed and the related sale and purchase agreement has been signed. It is expected that the transaction with Schering-Plough will be completed no later than the end of 2007.
Rationale
The Acquisition provides the opportunity to create a global leader in coatings and one of the largest specialty chemicals companies in the world with complementary brands, assets and skills, and leading positions in attractive specialty chemicals markets. The enlarged Akzo Nobel group will benefit from a diversified and broad geographic presence, a significantly strengthened Decorative Coatings business and highly attractive platforms for growth in emerging markets.
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