LONDON - ICI has reached an agreement to buy the Dulux business from South African corporation AECI for €52 million in cash.

In addition to buying the Dulux assets in South Africa, ICI is acquiring AECI’s shares in the Dulux subsidiaries in Botswana, Zambia, Swaziland, Malawi and Namibia. Completion is expected in the second half of 2007, subject to approval by the regulatory authorities.

Dulux is a leading decorative paints brand in the growing South African market. In 2006, Dulux sales grew 19%. The business employs 650 people, including 400 in South Africa.