JSW Paints to acquire majority stake in Akzo Nobel’s Indian unit for nearly Rs9,000 cr

JSW Paints on Friday announced the acquisition of a majority stake in the Indian operations of Dutch paints and coating company Akzo Nobel NV in a deal worth nearly Rs9,000 crore.

JSW Paints said it has entered into a share purchase agreement with the Dutch conglomerate to acquire up to 74.76 per cent equity in Akzo Nobel India Limited, of a maximum value of Rs8,986 crore (about 1.4 billion euros or $1.6 billion)).

Azko Nobel proposes to sell up to 75 per cent of its shares in its India operations, including the company’s liquid paints and coating business, but will retain ownership in its powder coatings and R&D centre in the country.

Akzo Nobel India, which owns some of the global paint and coating brands, including Dulux, International and Sikkens, said the sale is part of a strategic review of its global business, announced in October 2024. 

The sale will result in a net cash inflow of 900 million euros, after a euro 400 million share buy-back programme, Akzo will be left with euro 500 million to be deployed for deleveraging and fortifying its capital base.

Besides the sale consideration payable on completion of the transaction, there are certain contingent payments of up to Rs447 crore to be made as part of the deal.

Akzo expects the transaction to be completed by the fourth quarter of 2025, subject to regulatory and customary closing conditions, including approval from the Competition Commission of India and the mandatory open offer to the public shareholders of the company.

JSW Paints is part of the diversified business group that has interests in areas including steel, energy, infrastructure, cement, paints, B2B e-commerce, venture capital, defence, green mobility and sports.