JSW Paints has approached the Competition Commission of India (CCI) seeking approval for its proposed acquisition of a majority stake in Akzo Nobel India Ltd (ANIL), part of the Netherlands-headquartered Akzo Nobel group. The deal, valued at ₹12,915 crore, marks JSW’s biggest move yet in India’s fast-growing paints and coatings market.
Deal Structure: Majority Stake and Open Offer
In June, JSW Paints announced plans to acquire a 74.76% stake in Akzo Nobel India for ₹8,986 crore through a share purchase agreement. This will be followed by an open offer to buy up to 25% more shares from public shareholders for ₹3,929.06 crore, bringing the total deal size to over ₹12,915 crore. If completed, the transaction would make JSW Paints the country’s fourth-largest player in the paints industry.
“The proposed transaction relates to the acquisition of up to 75% shareholding in the target by JSW Paints through a share purchase agreement and a mandatory open offer,” the company stated in its CCI filing. Both JSW Paints and ANIL have maintained that the combination poses no competition concerns.
Strategic Expansion in Paints and Coatings
JSW Paints, part of the $23 billion JSW Group, entered the paints sector in 2019 and has since emerged as one of the fastest-growing players. As reported by thehindubusinessline.com, the acquisition will give JSW access to Akzo Nobel India’s strong brand portfolio, including Dulux, International, and Sikkens, as well as an extensive decorative and industrial paints network. Parth Jindal, Managing Director of JSW Paints, commented, “Akzo Nobel India is home to globally renowned brands. Together, we aspire to build the paint company of the future.”
