JSW Paints To Acquire Akzo Nobel India in Rs 8,986-Crore Deal

JSW Paints, part of USD 23 billion JSW Group, on Friday said it will acquire majority controlling stake in Akzo Nobel India Ltd (ANIL), the maker of Dulux paints, for Rs 8,986 crore.

It will acquire 74.76 per cent stake from its Dutch promoters/holding entities -- namely Imperial Chemical Industries and Akzo Nobel Coatings International BV -- for a consideration of Rs 8,986 crore, according to a statement from the JSW Group firm.

"JSW Paints today (Friday) entered into definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India from Akzo Nobel NV and its affiliates, for a maximum consideration under the share purchase agreement of up to Rs 8,986 crore," it said. With this transaction, ANIL's Dutch promoters group, which together held 74.76 per cent shareholding in the company, has exited the Indian decorative paints market, which is witnessing disruption with entry of new players as Aditya Birla Group.

The deal is subject to certain closing adjustments and regulatory approvals from the Competition Commission of India (CCI) and the completion of a mandatory open offer to the public shareholders of ANIL. The deal will help JSW group expand its play into the paint segment, which it entered into in 2019 and is a relatively new player establishing its base in the industry. "This transformative acquisition positions JSW Paints as one of the major players in the sector, which is expected to see robust growth in the years ahead," it said.

JSW Paints Managing Director Parth Jindal said Paints & Coatings is one of India's fastest-growing sectors and JSW Paints is among the fastest growing paint companies. "Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family -- employees, customers and partners -- we aspire to build the paint company of the future," he said.

AkzoNobel CEO Greg Poux-Guillaume said, "This transaction is a significant milestone in the execution of our strategy. AkzoNobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector." Morgan Stanley acted as the exclusive financial advisor to JSW Paints on this transaction, while Khaitan & Co. acted as the legal advisor and Deloitte as the financial and tax due diligence advisor.

In October last year, Akzo Nobel NV announced a strategic review of its portfolio in South Asia and is looking for strategic options, including partnerships, joint ventures, mergers or divestments. This is to deploy capital towards expanding its core coatings business. Akzo Nobel India has a presence in a wide range of paints and coatings segments spanning from decorative paints; automotive and speciality coatings; industrial coatings; marine, protective and yacht coatings to powder coatings.

Its revenue from operations in FY25 was Rs 4,091.21 crore. Earlier on February 25, ANIL has said it will transfer its Powder Coatings business and International Research Centre (R&D) to its Dutch parent firm Akzo Nobel NV in a Rs 2,143-crore intergroup deal. AkzoNobel India had acquired "intellectual property rights" of Akzo Nobel Coatings International BV for its decorative paints business in India, Bangladesh, Bhutan, and Nepal for a consideration of Rs 1,152 crore. The Indian paint industry is dominated by players such as Asian Paints, Berger, Kansai Nerolaca, and AkzoNobel India.

In last 5-6 years, several new players have entered this market, including Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints. Besides, pipes and fittings manufacturer Astral acquired Gem Paints and JK Cements entered by acquiring Acro Paints asking its entry into the paint sector. In its latest annual report, Akzo Nobel India, citing the data of the Indian Paints Association, said the paints & coatings industry in the country is estimated to be USD 8.5 billion in value and 6.3 million MTPA by volume.