AkzoNobel India shares jump 11% as JSW Paints acquires company; details you need to know

Shares of AkzoNobel India, after the deal announcement, jumped in the trade. The stock rallied as much as 10.74% to ₹3,532 apiece on the NSE.

JSW Paints announced the acquisition of a majority stake in Akzo Nobel India for about ₹9,000 crore.

JSW Paints, part of the $23 billion JSW Group, will hold a 74.76% stake in Akzo Nobel India post the deal, the filing added.

The proposed transaction is subject to approval from the Competition Commission of India (CCI) and the completion of a mandatory tender offer (open offer) to the public shareholders of AkzoNobel India (ANIL).

AkzoNobel India is one of India's leading decorative and industrial paint players and part of AkzoNobel, a global leader in decorative paints and industrial coatings headquartered in the Netherlands.

This acquisition will further increase the competition in the Indian paint sector. The deal positions JSW Paints as one of the major players in the industry, which is expected to see robust growth in the years ahead.

The company said that Morgan Stanley acted as the exclusive financial advisor to JSW Paints on this transaction. Khaitan & Co. acted as the legal advisor. Deloitte acted as the financial and tax due diligence advisor.

What companies say

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. AkzoNobel India is home to some of the most globally renowned brands of paints & coatings, like Dulux, International and Sikkens."

Jindal added. "We are excited to welcome them to the JSW family. Together, along with the AkzoNobel India family – employees, customers and partners – we aspire to build the paint company of the future."

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."

AkzoNobel India acquisition: The background

In October last year, Akzo Nobel NV announced a strategic review of its portfolio in South Asia and was looking for strategic options, including partnerships, joint ventures, mergers or divestments. This was to deploy capital towards expanding its core coatings business.

AkzoNobel India has a presence in a wide range of paint and coating segments, spanning from decorative paints to automotive and speciality coatings, industrial coatings, marine, protective and yacht coatings and powder coatings.

Its revenue from operations in FY25 was ₹4,091.21 crore.

Earlier, on February 25, Akzo Nobel India said it would transfer its Powder Coatings business and International Research Centre (R&D) to its Dutch parent firm, Akzo Nobel NV, in a ₹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 ₹1,152 crore.

The Indian paint industry is dominated by players such as Asian Paints, Berger, Kansai Nerolac, and AkzoNobel India. In the 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 for its entry into the paint sector.

In its latest annual report, AkzoNobel 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.

How other paint stocks are performing

Asian Paints shares were trading over 1% at ₹2,313.75 apiece on the BSE, while Berger Paints was trading flat at ₹571.80, up 0.26%. Kansai Nerolac Paints was trading 0.72% higher at ₹245.80 on the BSE.