JSW may buy Akzo Nobel India for $1.1 billion

JSW group firm JSW Paints is set to buy Akzo Nobel India, the firm behind the premium Dulux brand, in a deal valued at $1.1 billion (about Rs9,500 crore), The Economic Times reported, citing people familiar with the matter.

If finalized, the acquisition will make JSW the fourth-largest firm in India’s decorative paints market and the second-largest in the industrial paints segment.

Akzo Nobel India, with a market capitalization of ₹16,380 crore and a stock price that has surged 40% over the past year, has been at the center of acquisition talks, especially after its Dutch parent, Akzo Nobel NV, decided to review its business operations in India last October.

People aware of the matter said

The acquisition by JSW group will lead to an open offer for an additional 26% of the company under regulatory requirements, the report said, citing the people mentioned above, adding that the paint firm’s offer price will be based on the weighted average share price over the past 60 days, adjusted for a ₹700 crore cash payout to shareholders as dividend.

JSW will reportedly fund the acquisition through a mix of ₹3,000 crore in equity from the JSW promoter family, led by chairman Sajjan Jindal, and ₹3,000 crore in debt from banks such as Deutsche Bank, MUFG, and Axis Bank.

The rest of the amount may be financed through other credit funds, with Citi and Morgan Stanley advising on the deal. The two sides are reportedly working towards finalizing a share purchase agreement by mid-June, within a 30-day exclusivity period.

JSW and Akzo Nobel did not respond to queries.

This deal is expected consolidate India’s paints industry, with JSW inching closer to third-placed Kansai Nerolac in the decorative paints segment.

Akzo Nobel India reported a consolidated net profit of ₹108.4 crore for the fourth quarter ended 31 March 2025, marking a marginal decline from ₹108.7 crore in the same period last year.

Revenue from operations for the quarter stood at ₹1,022.1 crore, up from ₹973.4 crore in the year-ago quarter. Total expenses increased to ₹887.3 crore compared to ₹836.7 crore a year earlier.