JSW Paints to acquire 74.76% stake in Akzo Nobel India for ₹9,000 cr, eyes major market consolidation

JSW Paints entered into definitive agreements to acquire the stake, which is subject to approval from the Competition Commission of India (CCI) and the completion of a mandatory open offer to the public shareholders of ANIL.

JSW Paints is part of the US$ 23 billion JSW Group, which has diverse interests across a range of B2B and B2C sectors including steel, cement, energy infrastructure, automotives and paints.

ANIL is one of India’s leading decorative and industrial paints players and part of Akzo Nobel, a decorative paints and industrial coatings company headquartered in the Netherlands.

"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," the company said.

With this deal India’s paints market witnesses a major consolidation as  established brands like Dulux and Sikkens will come under the JSW umbrella..

JSW Paints is positioning itself as a serious player in the market dominated by a few players.

Currently, the top players include Asian Paints and Birla Opus, which has become the second-largest by capacity through swift expansion.

Parth Jindal, Managing Director, JSW Paints, said “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.

"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.”

Morgan Stanley acted as the exclusive financial advisor to JSW Paints on this transaction, while Khaitan & Co. was the legal advisor. Deloitte was the financial and tax due diligence advisor.