Orica Ltd, the world's largest industrial explosives maker, says the demerger of its DuluxGroup paint and garden products business in Australia is worth the millions in transaction fees.

The transaction will cost nearly $100 million but will still be worth it, according to Orica chief executive Graeme Liebelt.

"You look at the size of the two businesses that are going to be separated, Dulux with whatever it turns out to be, potentially a billion dollars or more, Orica in the several billion dollars of market capitalisation," he said.

"If greater focus allows both companies to generate some more value, that kind of number will be very quickly outweighed by the extra value generated."

Mr Liebelt said the move to separate the two businesses was decided when it became obvious that Orica should concentrate on the mining sector, which the company perceives as less volatile and had more growth potential.

The chief executive is keen on acquisitions opportunities in its mining services, explosives and chemicals business.

Orica received approval from the Supreme Court of Victoria for the demerger of its DuluxGroup unit last week.

The transaction will be implemented through a scheme of arrangement.

DuluxGroup is set to start trading on the Australian Securities Exchange (ASX) at 1100 (AEST) today under the ASX code DLX.

Shares of DuluxGroup will initially trade on a deferred settlement basis.
Orica will trade on an ex-entitlements basis from today.