Mumbai: In a landmark deal in the Indian paint industry, JSW Paints is reportedly set to acquire Akzo Nobel India, valuing the Indian arm of the Dutch multinational at around Rs. 12,000–12,200 crore. This valuation reflects a 25% discount to the company’s current market capitalisation of Rs. 16,380 crore. The deal values Akzo Nobel NV’s 74.76% stake in the Indian unit at approximately Rs. 9,000 crore ($1.1 billion). Once completed, the acquisition will bring JSW Paints to the fourth position in India’s decorative paints segment and second in the industrial paints market.
As per regulatory norms, the acquisition will lead to an open offer for an additional 26% stake from public shareholders. The offer price will be based on the 60-day weighted average of the share price, adjusted for the Rs. 700 crore cash on Akzo Nobel India’s books, which will be distributed to shareholders as dividends.
The transaction is expected to cost JSW between Rs. 9,000–9,500 crore, with the Sajjan Jindal-led promoter group contributing Rs. 3,000 crore in equity and another Rs. 3,000 crore financed through banks, including Deutsche Bank, MUFG, and Axis Bank.
The two companies are aiming to finalise the share purchase agreement by mid-June, within a 30-day exclusivity period. The acquisition marks a major consolidation move for JSW Paints, further intensifying competition in India’s booming paints sector.
