Akzo Nobel, the paints and chemicals group, has agreed to buy BASF’s industrial coatings business for €475m.

The Dutch company, which owns the Dulux brand, said the deal would involve the transfer of two factories – one in the UK and another in South Africa – along with technologies, patents and trademarks, writes the FT’s Michael Pooler.

The BASF business had revenue of about €300 million last year and supplies coatings for coil, furniture foil, panel coatings, wind energy and and commercial transport, Akzo said.

It comes after Akzo Nobel last year beat financial targets set in 2012 by its chief executive Ton Büchner, who said the company had “earned the right to participate in bolt-on acquisitions” having turned cashflow positive.

The transaction is expected to complete in the second half of 2016, subject to consultations with employee representatives and regulatory approval.

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