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JSW Paints seeks CCI nod to acquire stake in Akzo Nobel for ₹12,915 cr
The development came after JSW Paints announced in June this year that it will buy a 74.76 per cent stake in Akzo Nobel India for ₹8,986 crore, followed by an open offer to buy another 25 per cent from open market for up to ₹3,929.06 crore, totalling over ₹ 12,915 crore, to become the fourth-largest player in the paint industry in the country.
"The proposed transaction relates to the acquisition of up to 75 per cent shareholding in the target (Akzo Nobel India Ltd) by the acquirer (JSW Paints Ltd) through a share purchase agreement, and a mandatory open offer," according to a notice filed with the Competition Commission of India.
The parties (JSW Paints and Akzo Nobel India) said the proposed combination does not raise competition concerns in any plausible relevant markets and therefore, the relevant market delineations may be left open.
JSW Paints is a part of the USD 23 billion JSW Group, one of India's leading conglomerates with diverse interests across a range of B2B and B2C sectors, including steel, cement, energy infrastructure, automotives and paints.
Akzo Nobel India Ltd (ANIL) is a decorative and industrial paint player and part of Netherlands-headquartered Akzo Nobel.
In June, Akzo Nobel NV, in a global statement, said it has signed an agreement to sell its shareholding in Akzo Nobel India to the JSW Group.
However, the Dutch parent firm also said the India Powder Coatings business and International Research Centre, both currently part of ANIL, will be "retained by Akzo Nobel" under full ownership.
JSW Paints, with other group entities JTPM Metal Traders and JSW EduInfra, has also announced an open offer to acquire the remaining 25.24 per cent share of ANIL from the public shareholders for a total consideration of up to Rs 3,929.06 crore.
The deal will help JSW Group expand its play in the paint segment, which it entered in 2019.
JSW Paints Managing Director Parth Jindal said paints & coatings is one of India's fastest-growing sectors, and JSW Paints is among the fastest-growing paint companies.
"Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family -- employees, customers and partners -- we aspire to build the paint company of the future," he said.
In October 2024, Akzo Nobel NV announced a strategic review of its portfolio in South Asia and is looking for strategic options, including partnerships, joint ventures, mergers or divestments. This is to deploy capital towards expanding its core coatings business.
Its revenue from operations in FY25 was Rs 4,091.21 crore.
The Indian paint industry is led by Asian Paints. Besides Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are the other top brands.
In the last 5-6 years, several new players have entered the market, including Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints.
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