SHAREHOLDERS in chemical group ICI's potential new owner Akzo Nobel yesterday gave their backing to its £8bn takeover bid.

At an extraordinary general meeting held by the Dutch firm yesterday, 79 per cent of shareholders voted in favour of the deal, which will create the world's biggest coatings company.

Only 50 per cent plus one share was needed to advance the bid.

The transaction is now expected to be completed on January 2, subject to Dulux paint maker ICI shareholders' approval, which could be given as early as today.

ICI - which employed about 80,000 people on Teesside, in its Sixites heydey, but now has only about 100 people working in research and development - reported an 18 per cent lift in third-quarter profits to £177m last week.

Chief executive John McAdam was predicting further growth for the fourth quarter.

Shares in ICI rose slightly on the back of the approval, closing last night at 663.50p.

The company's share price has been almost constantly increasing since Akzo Nobel made its £8bn bid in August, rising steadily from 617p to its current high.

Hans Wijers, chief executive of Akzo Nobel, said: "We have taken a major step towards creating a global industrial leader in coatings and specialty chemicals, which will provide significant benefits for shareholders, employees and other stakeholders.

"This deal is about growth. It's about combining the expertise, technologies, products and brands that both companies have developed, and achieving leading positions across different global markets to create a strong platform for future growth."

Akzo Nobel first made a 650p-a-share offer for ICI in June, and was granted access to ICI's books two months later after a proposed higher offer of 670p a share.

It is expected that European regulators will make Akzo Nobel divest its UK paint business, Crown, to avoid monopoly issues with ICI in the UK, and to ensure the deal is approved.