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Akzo Nobel announces intended sale of Organon BioSciences to Schering-Plough

By Tim Wright | March 13, 2007

Akzo Nobel has received an offer for the purchase of its wholly owned subsidiary Organon BioSciences N.V. (OBS) from Schering-Plough for €11 billion in cash. As a result, Akzo Nobel will no longer be proceeding with the partial IPO of OBS on Euronext Amsterdam.

The board of management and the supervisory board of Akzo Nobel met, to consider the binding cash offer for OBS from Schering-Plough. It was concluded that this cash offer represents full value to Akzo Nobel, while providing a new home for OBS as it becomes part of Schering-Plough, which is one of the largest pharmaceuticals companies in the world. The board of management and the supervisory board believe that this transaction is in the best interests of all stakeholders, including employees, investors and customers, according to the company.

Parties expect that the transaction could be completed in the second half of the year, after consultation with social partners, and clearance from regulatory bodies.

Akzo Nobel aims to continue to grow in the most attractive areas of its coatings and chemicals portfolios through investments and acquisitions, based on a disciplined and value-driven approach to earnings and returns over cost of capital, according to the company. Consistent with the company's stated objectives, the proceeds of this sale provide room to deliver on its growth ambitions.