Akzo Nobel and BASF agree on two Coatings deals

Akzo Nobel and BASF agree on two Coatings deals Arnhem, the Netherlands, August 24, 2004 - Akzo Nobel has agreed to divest part of its liquid coatings activities in the agricultural, construction and earthmoving equipment (ACE) segment to BASF. In a separate deal, Akzo Nobel will acquire BASF Coatings' Wood Construction business (joinery). The financial details of the two transactions were not disclosed. The BASF business had sales of EUR 17 million in 2003; the ACE business EUR 9 million. The divestment involves the ACE activities of Akzo Nobel's Car Refinishes business in Germany, Austria, France, Italy, Switzerland and Spain. The manufacture of these coatings will be transferred from Akzo Nobel's sites in Zona Franca (Spain), Stuttgart (Germany) and Montataire (France) to one of BASF's coatings sites. With regards to Akzo Nobel's wood construction acquisition, the production of the BASF products - which are mainly used to coat doors and windows used in the construction industry (joinery) - will be transferred from the BASF site in Münster to Akzo Nobel's Decorative Coatings site in Cologne, Germany. "This divestment of our ACE activities needs to be considered against the backdrop of our ambitious growth strategy for our core coatings activities, which will require considerable resources," explained Rudy van der Meer, Member of Akzo Nobel's Board of Management responsible for Coatings. "Our Joinery business has established a strong position in many European markets in recent years through the Sikkens brand and the BASF business fits in very well with the strategic objectives we have for this market." Subject to final agreement, the transactions will include dedicated technology and business know-how. Manufacturing facilities will not be included in the deals. Discussions with employee unions and representative bodies are ongoing and the consultation procedures will continue where applicable. The transactions will be subject to applicable merger control procedures. Both companies expect to finalize the agreements by September 2004. - - - Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2003 totaled EUR 13 billion. The Company currently employs almost 64,000 people in more than 80 countries. The financial results for the third quarter will be published on October 19, 2004. Internet: www.akzonobel.com Not for publication - for more information Akzo Nobel N.V., Corporate Media Relations, tel. +31 26 366 4343, Contact: Marc Michelsen Safe Harbor Statement* This press release may contain statements which address such key issues as Akzo Nobel's growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. A copy of which can be found on the Company's website. * Pursuant to the U.S. Private Securities Litigation Reform Act 1995. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/08/24/20040824BIT20200/wkr0001.pdf Pressmeddelandet som pdf