JSW Paints to buy Akzo Nobel’s India unit in $1 billion deal

JSW Paints, part of the Sajjan Jindal-led JSW Group, has signed a deal to buy a 74.76 % stake in Dutch paint maker Akzo Nobel’s India arm for ₹8,986 crore (about $1.05 billion) in one of the biggest deals in India’s ₹90,000‑crore paint sector.

The transaction values the Indian arm at ₹12,000 crore, and includes a mandatory open offer to acquire the remaining shares.

Shares of Akzo Nobel India rose about 11% on BSE following the announcement, reflecting investor optimism. The deal has been announced at a 16% discount to Akzo Nobel’s closing share price on Thursday.

The acquisition will make JSW Paints—the group’s 2019‐founded venture—the fourth-largest player in India’s decorative paints segment, behind Asian Paints, Berger and Kansai Nerolac.

The deal brings flagship brands like Dulux, International and Sikkens into JSW’s portfolio.

JSW has appointed Morgan Stanley as financial advisor and Khaitan & Co. as its legal advisor. The deal is contingent on approval from India’s Competition Commission and the successful completion of the open offer process.

Akzo Nobel N.V., the Netherlands-based parent, will retain its industrial coatings and R&D operations in India and expects to net about €900 million from the sale.

The acquisition follows Akzo Nobel’s ongoing strategic review of its South Asia business and positions JSW for rapid scale in a competitive market.

Akzo Nobel, the fourth-largest paint maker in the world by market capitalisation behind PPG, Nippon Paint and Sherwin-Williams, will continue to retain its research and development arm and powder coatings business in India.