M&A

12 November, 2009

UPDATE 1-Akzo Nobel buys Dow's powder coatings business

* Deal will provide synergies, efficiencies

* No financial details disclosed

(Adds details)

AMSTERDAM, Nov 12 (Reuters) - Dutch chemical group Akzo Nobel NV (AKZO.AS) said on Thursday it would buy the powder coatings operations of U.S. firm Dow Chemical (DOW.N) for an undisclosed sum as it seeks to further focus its operations.

Akzo Nobel, the world's biggest paint company, said the deal would provide synergies and improved operational efficiency.

"This is a strategic acquisition which will enable us to further penetrate key industrial coatings segments," said Leif Darner, Akzo Nobel's Performance Coatings director.

Dow purchased the powder coatings business earlier this year as part of its acquisition of Rohm & Haas.

Akzo Nobel said the Rohm & Haas businesses it bought from Dow in the United States, Europe and China have developed new technologies, especially for the automotive and architectural segments, and have annual sales of several hundred million dollars.

The transaction is expected to close during the second quarter of 2010, subject to regulatory approvals.

The deal came one day after Akzo was fined 40.6 million euros by the European Commission, one of 24 companies fined a total of 173 million euros for taking part in a heat stabilisers cartel. [ID:nL7320506] (Reporting by Aaron Gray-Block; Editing by Jon Loades-Carter)

Source: http://www.reuters.com