Canada clears Akzo-ICI deal, with conditions
Fri Dec 14, 2007 12:45pm EST
OTTAWA, Dec 14 (Reuters) - Canada's Competition Bureau said on Friday it had reached an agreement with Dutch chemical group Akzo Nobel for it to divest certain paint brands and other assets to clear the way for its purchase of Britain's ICI.
"The bureau is satisfied that these remedies will address the competition concerns in the supply of paint that result from this acquisition," Melanie Aitken, senior deputy commissioner of competition, said in a statement.
Akzo Nobel has agreed to divest its Para paint brand, its Crown Diamond paint brand and related assets as well as to end all programs for five years that rewarded Quebec retailers for carrying only Akzo Nobel brands.
The antitrust body said these measures would encourage the entry or expansion of another paint supplier.
Akzo also won conditional approval from the European Commission on Friday for its 8 billion pound ($16.3 billion) acquisition of ICI to create the world's biggest paint maker.
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