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Corn Products to Buy National Starch

Corn Products agreed to acquire National Starch, a global maker of specialty starches, from Akzo Nobel for $1.3 billion in cash.

WESTCHESTER, Ill. (

TheStreet

) --

Corn Products

(CPO)

agreed to acquire

National Starch

, a global maker of specialty starches, from

Akzo Nobel

for $1.3 billion in cash.

The acquisition is expected to close by the third quarter.

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A combination of the two companies will create an "ingredients solutions leaders with nearly $5 billion in revenues," Corn Products said Monday. National Starch had 2009 revenue of $1.2 billion.

"The acquisition aligns with our strategic priorities to grow our ingredient portfolio, increase our presence in priority food processing segments, enter new markets, and develop innovative solutions that better serve our customers," said Ilene Gordon, Corn Product's chairman, president and CEO, in a statement.

On a cash basis, the transaction is expected to be accretive by the end of 2011, Corn Products said.

Akzo Nobel acquired the starches business as part of its 2009 acquisition of British paintmaker

ICI

and didn't consider it part of its core business. Akzo Nobel is the world's largest maker of paints and industrial coatings.

-- Reported by Joseph Woelfel in New York.

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