Prime Highlights :
JSW Paints is to take over Akzo Nobel India for $1.1 billion in a huge industry consolidation.

The transaction involves an open offer to buy another 26% stake, possibly handing JSW complete control.

Key Facts :
Akzo Nobel NV has a 74.76% holding in its Indian subsidiary.

Akzo Nobel India is the fourth-largest company in the Indian paint market with a roughly 10% market share.

Key Background :
JSW Paints is poised to acquire Akzo Nobel India for $1.1 billion (about ₹9,000 crore). The acquisition would value the Indian subsidiary at around ₹12,000–₹12,200 crore, which is a 20–25% discount on its current market capitalization. The move is the biggest in the country’s paint industry and is targeted at dramatically increasing JSW Paints’ presence in both the decorative and industrial paint markets, making it one of the leaders in India’s paint market.

The transaction has been a result of Akzo Nobel NV’s strategic move to withdraw from its operations in South Asia in the backdrop of increased competitive forces in India’s booming paint sector. The Indian market worth around $8.5 billion has been experiencing cutthroat competition, forcing international companies like Akzo Nobel to re-scope its worldwide portfolio. The group had invited bids at the end of 2024, and multiple bidders, including JSW Paints, Pidilite, Indigo Paints, and private equity players like Blackstone and Carlyle, had shown interest.

JSW Paints was chosen as the preferred bidder upon entering into an exclusivity deal with Akzo Nobel India after outbidding a rival offer from a joint venture between Advent International and Indigo Paints. JSW Paints will buy Akzo Nobel NV’s controlling 74.76% stake under the proposed terms and subsequently make a mandatory open offer for another 26% stake from the public shareholders, as per norms. Yet, to keep up the stipulated 25% public shareholding percentage, JSW can permit Akzo to temporarily hold a small percentage of stake.

Upon completion, this acquisition will launch JSW Paints into the elite league—number four in decorative paints and number two in the industrial business in India. The acquisition is an indication of a wider industry trend towards consolidation, as companies face pressures to scale up, innovate and adapt to changing consumers’ needs.

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