The rise and fall of ICI

ICI, which today agreed to be taken over by Dutch rival Akzo Nobel for £8bn, was once the bluest of British blue chip companies.

Created in 1924 when four UK firms merged, Imperial Chemical Industries became a chemical powerhouse. Its scientists discovered how to synthesise polythene and Perspex, helping it to dominate the plastics industry, and the growth of DIY fuelled its Dulux paint division.

The company was regarded as a classic stock market bellwether, as watching ICI's shares gave a solid indication of the health of the nation's manufacturing base.

In 1984, under the leadership of flamboyant chairman Sir John Harvey-Jones, it became the first UK firm to rack up pre-tax profits of more than £1bn. Seven years later, it fought off corporate raider Lord Hanson's attempts to bid for the company.

That bitter battle damaged Hanson's reputation, but also forced ICI into a strategic shift away from bulk paints and chemicals which backfired badly. Having demerged its Zeneca pharmaceuticals arm in the early 1990s, it bought four speciality chemicals firms from Unilever for £4.8bn.

This was soon seen as a massive overpayment by ICI. It struggled to offload its own bulk chemical businesses and in 1999 its market capitalisation slumped to just £4bn, less than its total debts of £4.2bn.

Since becoming chief executive in 2003, John McAdam has pursued a strategy of cutting back ICI's operations and focusing on developing markets. Thousands of jobs were lost, profits rose, and the company's share price recovered - but not to the £10 level seen a decade ago.

If both ICI's and Akzo's shareholders back the move, the one-time chemical giant will follow O2, BAA, Abbey, Corus, P&O and, indeed Hanson, into foreign hands by the end of the year.