UK industrial giant ICI is set to acquire Dulux paint business from its South African owner AECI for £52 million.

The company is also acquiring AECI’s shares in Dulux’s subsidiaries based in Botswana, Zambia, Swaziland, Malawi and Namibia.

The deal is set to be completed in the second half of the year, subject to approval by regulatory authorities.

Dulux employs 650 people, has trading profits of £5 million and net assets of £17.8 million.

ICI’s turnover for 2006 was £4.845 billion, with profits before tax at £355 million and market cap of £7.375 billion, it has around 32,000 staff worldwide.

The company was founded in 1926 with the merging of four UK chemical companies and produces industrial chemicals, paints and explosives.