In a landmark move to expand its footprint in India’s growing paint industry, JSW Paints announced the acquisition of Akzo Nobel’s India unit in a ₹12,915-crore deal. The acquisition will propel JSW Paints to the position of the fourth-largest player in the Indian paint market.
Majority Stake Purchase with Open Offer
JSW Paints will acquire a 74.76% stake in Akzo Nobel India Ltd. (the maker of Dulux paints) for ₹8,986 crore through a share purchase agreement. In addition, it plans to launch an open offer to purchase up to 25% stake from public shareholders, amounting to ₹3,929.06 crore, bringing the total potential outlay to ₹12,915 crore.
Definitive Agreements Signed
“JSW Paints has entered into definitive agreements to acquire up to 74.76% stake in Akzo Nobel India from Akzo Nobel NV and its affiliates,” the company stated. The acquisition will be executed under a formal share purchase agreement.
Global Confirmation from Akzo Nobel NV
Akzo Nobel NV confirmed the transaction in a global statement, saying it has signed an agreement to divest its entire shareholding in Akzo Nobel India Ltd (ANIL) to the JSW Group. The sale includes Akzo Nobel’s liquid paints and coatings business in India.
Valuation and Financial Details
The deal is based on a total enterprise value of approximately €1.4 billion, with an EV/EBITDA multiple of 22x. The strategic valuation highlights the strength and potential of Akzo Nobel’s Indian operations. It also aligns with JSW’s long-term growth goals in the paints and coatings sector.
Strengthening JSW’s Presence in Paints
ThE acquisition marks a major milestone in JSW Group’s diversification strategy and significantly strengthens its position in the paints segment. As reported by outlookbusiness.com, the deal enhances JSW Paints’ market share. It also adds premium product lines and established brand equity to its portfolio.
