JSW Paints to Acquire 74.76% Stake in Akzo Nobel India for INR 8,986 Crores

JSW Paints Limited has entered into definitive agreements to acquire up to 74.76% stake in Akzo Nobel India Limited from Akzo Nobel N.V. and its affiliates for a maximum consideration of INR 8,986 crores. The transaction requires approval from the Competition Commission of India and completion of a mandatory tender offer to public shareholders.

The acquisition positions JSW Paints, described as India's fastest growing paints company, as a major player in the domestic paints sector. JSW Paints operates as part of the USD 23 billion JSW Group, which maintains operations across steel, cement, energy infrastructure, automotive and paints sectors.

Akzo Nobel India represents one of India's leading decorative and industrial paints companies and operates as part of Netherlands-headquartered Akzo Nobel, a global leader in decorative paints and industrial coatings. The Indian subsidiary manages globally recognized paint and coating brands including Dulux, International and Sikkens.

The transaction includes potential contingent consideration amounts totaling up to INR 447 crores beyond the primary acquisition price, subject to specific conditions and closing adjustments.

JSW Paints launched operations in 2019 and has established manufacturing facilities and distribution networks across India. The company produces decorative paints and industrial coatings through state-of-the-art facilities supported by pan-India distribution capabilities.

The JSW Group employs approximately 40,000 people across operations in India, the United States, Europe and Africa. The conglomerate maintains a presence in multiple sectors including steel, energy, infrastructure, cement, business-to-business e-commerce, venture capital, defense, green mobility and sports.

Morgan Stanley served as exclusive financial advisor to JSW Paints for the transaction, while Khaitan & Co. provided legal advisory services. Deloitte acted as financial and tax due diligence advisor for the acquisition.

Parth Jindal, Managing Director, JSW Paints, said "Paints & Coatings is one of India's fastest growing sectors and JSW Paints is amongst 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. With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders."

Greg Poux-Guillaume, CEO of AkzoNobel, 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."