ICI sells Uniqema

(ICI) has reached an agreement to sell its oleochemicals and surfactants business,

, to Yorkshire-based

for a gross consideration of £410 million.

Of the gross consideration, £24 million will be used to provide for deal-related costs and tax. Of the balance, approximately £130 million will be used to reduce ICI's related post-retirement benefit deficits and around £256 million will be used in the near term to reduce net debt.

The transaction is expected to give rise to a profit after tax of around £16 million which will be accounted for as a special item in ICI's income statement when the deal has been completed.

The transaction is subject to approval by Croda shareholders, regulatory approval and employee consultation. In the case of the Uniqema business within ICI India Limited, the transaction is subject to its shareholders' approval. The Uniqema business within ICI Pakistan Limited will not be part of the transaction.

ICI took the strategic decision in February to divest Uniqema. ICI Chief Executive John McAdam stated at the time that there was no compelling need to divest Uniqema, but if there was scope to realise value from a sale, ICI would have several attractive opportunities to invest the proceeds in other parts of ICI.