29 Oct, 2008 - Akzo Nobel has postponed the sale of its National Starch unit because of the financial turmoil gripping global markets.
The Dutch chemical giant said it would not sell its starch business this year
Chief Financial Officer Keith Nichols said: "There has been consistent strong interest in the business. Our conclusion really is that given the current uncertainty in the wider economy, coupled with financing issues for certain players it's unlikely we'll be able to sell before the end of this year.”
However, Mr Nichols did say the company would be offloading National Starch but gave no deadline for the deal.
The announcement came as Akzo Nobel posted its Q3 results in which core profits fell 9% to EUR 367 million in line with the company’s earlier forecasts. The group stuck to its 2008 outlook but said prospects for 2009 were uncertain.
The world's largest paint maker has been hit by the global economic slowdown, with its decorative paints business primarily under pressure from the housing crisis in the United States and slowing sales in the UK and other parts of Europe.
Mr Nichols said: "I would categorise the third quarter as what we expected, not dramatically worse. We're very cautious, it is difficult to read. We're confident we can deliver 2008 and we'll really just have to wait and see how things develop."