AkzoNobel N.V. announced the sale of its National Starch business to Corn Products International. According to AkzoNobel, its board did not find sufficient opportunity in National Starch to create value within the company’s transformed coatings and specialty chemicals portfolio.
National Starch, formerly a subsidiary of ICI, was assumed by AkzoNobel as part of its acquisition of ICI in January 2008. In April 2010, it was announced that AkzoNobel had received renewed expressions of interest in National Starch, which had accordingly been reclassified as a discontinued operation.
AkzoNobel will receive $1.3 billion in cash, and Corn Products will assume certain pension and employee benefit liabilities. The transaction, which has been approved by the boards of both AkzoNobel and Corn Products, is expected to close at the end of the third quarter of 2010, subject to the appropriate regulatory approvals.
According AkzoNobel, the acquisition expresses the focus on its global coatings and specialty chemicals company. Meanwhile, Corn Products will utilize the acquisition to grow its ingredient portfolio, enter new markets and develop innovative solutions that better serve its customers.