Dutch paints and chemical concern Akzo Nobel has made a formal bid for its British rival ICI for €11.8bn or 670 pence per share. The takeover is the biggest ever by a Dutch company, says ANP news agency.

The company made the announcement on Monday morning as expected. The deadline for a bid expires at 11am today. The offer has the support of the ICI management.
The takeover will strengthen Akzo Nobel’s position as the producer of paints, boosting turnover in this sector from €3.6bn to almost €10bn, according to today’s Financieele Dagblad.
Akzo plans to sell off two ICI chemical divisions to the German company Henkel for €4bn but it is unclear what it intends to do with the rest of ICI’s chemical activities, the paper says.
The takeover is expected to generate around €270m in synergy advantages the paper quotes insiders as saying.
The transaction still requires approval from Akzo Nobel shareholders.