Competition Bureau Canada

Competition Bureau Canada
Industry Canada

Industry Canada

December 14, 2007 12:44 ET

Competition Bureau Resolves Concerns in Paint Merger

OTTAWA, ONTARIO--(Marketwire - Dec. 14, 2007) - The Competition Bureau announced today that it has reached a consent agreement with Akzo Nobel N.V. (Akzo Nobel) to divest certain paint brands and other assets in Canada, resolving competition concerns resulting from its acquisition of Imperial Chemical Industries PLC (ICI). The agreement was filed with the Competition Tribunal.

"The Bureau is satisfied that these remedies will address the competition concerns in the supply of paint that result from this acquisition," said Melanie Aitken, Senior Deputy Commissioner of Competition.

Under the consent agreement, Akzo Nobel has agreed to do the following:

- divest the PARA business, which includes a production facility in Etobicoke, Ontario;

- divest the Crown Diamond brand and related assets; and

- in Quebec, cease for a period of five years all programs that reward retailers for carrying

- only Akzo Nobel brands, or for the number of Akzo Nobel brands purchased.

This remedy is designed to increase competition by encouraging the entry or expansion of another paint supplier.

The consent agreement provides that if Akzo Nobel is unable to divest the assets, a trustee will be appointed to expeditiously complete the sale process. A divestiture monitor will be appointed immediately upon closing to oversee Akzo Nobel's compliance with the consent agreement.

Netherlands-based Akzo Nobel owns a number of paint brands sold in Canada including Sico, Para, Betonel and Crown Diamond. ICI, based in Britain, owns a number of brands in Canada such as CIL, Glidden, Colour Your World and Ralph Lauren.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

The consent agreement can be found on the Competition Tribunal's Web site: http://www.ct-tc.gc.ca/english/casedetails.asp?x=67&caseid=289

Contact Information

  • External Relations and Public Affairs Branch
    Pamela Wong
    Communications Advisor
    819-953-7734
    or
    Competition Bureau
    Information Centre
    819-997-4282
    Toll free: 1-800-348-5358
    TDD (hearing impaired): 1-800-642-3844
    compbureau@cb-bc.gc.ca