Akzo Nobel receives 110 million [euro] offer for coatings resins business.

Akzo Nobel has received an offer of 110 million [euro] from Nuplex Industries Limited for its coating resins business, which had sales of 256 million [euro] in 2003.

"The transaction would complete a major round of divestments in chemicals which will, at closing, have generated some 1 billion [euro]. The proceeds will be used to reduce debt and to boost the growth areas of our portfolio that meet our financial criteria," said Hans Wijers, chairman of Akzo Nobel's board of management.

Closing of the transaction is expected to take place in the final quarter of 2004. The divestment covers the entire business including shareholdings in two consolidated joint ventures in Malaysia and Indonesia and a non-consolidated joint venture in Thailand. Other key locations are in the UK and the U.S. All 850 employees will transfer with the business.

Akzo's coatings resins business is focused primarily on industrial coatings segments with particular emphasis on automotive OEM, vehicle refinishes, plastics and specialty metal markets. Key product lines are solventborne and waterborne acrylics, solventborne alkyds, solventborne and powder polyesters and solventborne aminos.

Nuplex Industries Limited, headquartered in Auckland, New Zealand, specializes in resins for the paint, adhesive, ink, fiberglass and paper industries and protective and decorative floor toppings, waterproofing and specialized plasters.