AkzoNobel to Acquire Boxing Oleochemicals

AkzoNobel said it will buy Boxing Oleochemicals, a Chinese supplier of nitrile amines and derivatives. Financial details were not disclosed. The company, which had revenues in 2010 of about €100 million, will be integrated into AkzoNobel's Surface Chemistry business.

Demand in Asia for amines and derivatives is being driven by population growth, expanding middle class, increased focus on sustainability and the build-up of infrastructure, particularly in China and India.

"The demand for amines and derivatives is expected to increase significantly over the next few years, with a third of the Asian demand for amines coming from China alone," said Bob Margevich, managing director of AkzoNobel Surface Chemistry.

The completion of the transaction is subject to closing conditions, including the approval of the Chinese authorities. It is expected to be finalized in the last quarter of 2011.