ICI, the FTSE 100 chemicals group, has agreed an £8 billion cash sale to Akzo Nobel that will bring together the makers of Dulux and Crown paint.

The Dutch group said today that it had won the agreement of the ICI board for an offer at 670p a share.

The deal comes two months after Akzo made its first indicative offer for ICI.

John McAdam, the ICI chief executive, said: "Akzo Nobel has today made a compelling offer which delivers full value for ICI, reflecting ICI's strong future growth prospects and strategic opportunities."

He said that acceptance of the offer was in shareholders' "best interests".

Akzo said that the combination of the two groups would create a global leader in coatings and one of the largest speciality chemicals groups in the world.

Hans Wijers, the Akzo Nobel chief executive, said that the deal would be a "transformational step" for the group.

Akzo first made an approach to ICI in June, with a 600p-a-share offer that valued the UK group at £7.2 billion.

However, the ICI board, led by the chairman Peter Ellwood, held out for a higher offer.

A 650p-a-share offer was also rejected.

The Dutch group had until 10am today to make a statement, having been given extra time by the Takeover Panel with ICI’s blessing.

Akzo has also agreed a separate deal with Henkel, signed this morning, under which the German consumer goods group will buy parts of ICI's American business.

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