CHEMICALS group ICI - one of the most famous names in British industry - is to fall into foreign hands after yesterday agreeing an £8bn takeover offer from Dutch rival Akzo Nobel.

Dulux paint maker ICI's recommendation of the 670p-a-share offer follows a two-month pursuit by Akzo, best known in the UK for its Crown Paints brand.

The deal will end more than 80 years of British ownership for ICI, which was founded in 1926 through the merger of four chemicals companies.

ICI chief executive John McAdam said Akzo's latest approach was a "compelling offer" for the business, "reflecting ICI's strong future growth prospects and strategic opportunities".

Last night, ICI's shares closed at 624½p.

Akzo is keen to merge ICI's paints business with its own, estimating cost savings of about £189m from the combination of the two operations.

The Dutch firm has also struck a deal to sell-on the company's adhesives and electronic materials business to German chemicals firm Henkel, maker of Persil washing detergent, for £2.7bn.

Akzo has been seen as a likely buyer of ICI since it sold its pharmaceuticals business Organon BioSciences to Schering-Plough in March to concentrate on its core paints and speciality chemicals operations.

ICI has about 3,500 staff in the UK and about 26,000 worldwide.

The firm employed more than 60,000 people on Teesside in the Sixties, but now has only about 100 staff employed in research and development.

The company's chief executive Hans Wijers said the deal would create a business with a ''diversified geographic presence and well developed access to fast growing markets, particularly China and Latin America''.

The deal has yet to be cleared by competition authorities.