AKZO NOBEL has put its UK business Crown Paints up for sale for around £200m.

The Dutch chemicals and paint giant has appointed investment bank Greenhill to find buyers for Lancashire-based Crown.

The auction is expected to attract strong interest from buyers, particularly US companies keen to diversity into Britain.

The sale of Crown Paints has been forced upon Akzo by the European Commission because its £8 billion takeover of ICI last year has given it too much dominance over the UK market.

Akzo’s purchase of ICI gave it control over Dulux, which is the No 1 paint manufacturer in Britain, while Crown is No 2.

Analysts expect America’s Sherwin-Williams to bid as it has already expressed a desire to lessen its reliance on its home market, where it is the biggest player. PPG Industries and RPM International have also been tipped as potential US buyers.

Last year PPG paid £1.6 billion to buy the Netherlands-based firm Sigmakalon, which owns Johnstone’s Paint, from private-equity firm Bain Capital.

Akzo is required to dispose of a number of other businesses and sites across Europe to appease European Competition authorities, including manufacturing and warehousing sites in Belfast, Darwen, Hull, Warrington and Dublin, as well as the Berger, Macpherson, Permoglaze and Sandtex brands.

The former senior management team that transformed ICI’s fortunes before selling it to Akzo have recently been appointed to lead troubled support-services group Rentokil Initial.

The move has prompted speculation that the team, led by ICI’s former chief executive John McAdam, will eventually seek a sale of Rentokil once its performance has been improved.

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