| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Download our free eResource: Safety in Coatings Work.

Paint and Coatings Industry News

Main News Page

AkzoNobel to Split ICI Pakistan

Wednesday, May 11, 2011

More items for Coating Materials

Comment | More

AkzoNobel has announced plans to split off its paints business from ICI Pakistan and sell off the chemicals piece of the company.

The split would result in two companies: AkzoNobel Pakistan Limited (the paints business) and ICI Pakistan Limited (comprising all other businesses of ICI Pakistan).

AkzoNobel would retain a 75.8 percent share of AkzoNobel Pakistan Limited and dispose of its remaining shares in ICI Pakistan.

‘Insufficient Opportunity’

The entire ICI Pakistan business has been a subsidiary of AkzoNobel since 2008, when the company acquired Imperial Chemical Industries (ICI) PLC. ICI Pakistan’s main businesses are polyester fiber, soda ash, life sciences, chemicals and decorative paints. In 2010, ICI Pakistan’s revenue amounted to €305 million (about $436.1 million US).

Protective coatings maker AkzoNobel sees little opportunity for its chemicals business in Pakistan.

“The company confirms its commitment to Pakistan and sees a strong future in paints,” AkzoNobel said in a carefully worded statement. Although a recent “strategic review of the businesses” found that the paints business “would be of clear commercial benefit,” the “strong and promising businesses” that make up the chemicals business “do not offer sufficient opportunity to create value within AkzoNobel’s transformed portfolio and future strategic ambitions,” the company said.

AkzoNobel said it would be “most beneficial for all concerned if the company was transferred to a new owner who could commit to investing and help to realize its full potential.”

Two-Stage Process

The breakup would occur in two stages. First, a de-merger would have to be approved by ICI shareholders and sanctioned by the Pakistani courts. Both would be listed, and AkzoNobel would own 75.8 percent of each.

The new paint business, including assets and liabilities, would be called AkzoNobel Pakistan Limited. The remaining businesses, assets and liabilities would become ICI Pakistan.

After the split, AkzoNobel would formally begin its search for a buyer for the chemicals business.

“AkzoNobel recognizes Pakistan as an important market and is committed to developing its ongoing coatings and paints business together with any other opportunities for its core activities in Pakistan,” the company said.


Tagged categories: Acquisitions; AkzoNobel; Business matters; Decorative coatings; Mergers

Comment Join the Conversation:

Sign in to our community to add your comments.

Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).

New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films

International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment

    Heat-FLex® Hi-Temp 1200

    Improved Corrosion
    Enhanced Durability
    Faster Shop Throughput

    Carboline Company
    Hyrdrocarbon Fire & Jet Fire Protection

    Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology

    Mitsubishi Gas Chemical America
    Performance Amine 1,3-BAC

    A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.

    Polyval Coatings
    Polyflex® Polyurea Linings

    Polyflex ™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.

    U.S. Zinc
    Historic Reliability. Innovative Performance.

    We offer custom grades and packaging of zinc dust, oxide, metal and fines, U.S. Zinc provides direct shipping to locations worldwide. U.S. Zinc – Helping the world work™

    GMA Garnet USA
    GMA Garnet™
    Natural Abrasives

    - Superior cleaning
    - Even Profile
    - Low Dust
    - Cost-Effective
    - Environmentally friendly
    - Recyclable up to 5 times
    Tel : +1 832 243 9300

    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker

    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

    © Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail