Latest news with #Dulux
Reuters
16 hours ago
- Business
- Reuters
Breakingviews - AkzoNobel sale flags India's foreign capital angst
MUMBAI, June 27 (Reuters Breakingviews) - What's good for Indian tycoons is not always good for India. Dutch paint maker AkzoNobel ( opens new tab is selling a controlling stake in its local unit to the domestic JSW Group. The deal fits into its goal to focus its global portfolio amid a hypercompetitive market – but it also deepens India's capital outflow woes. The $12 billion maker of the Dulux paint brand on Friday said it would offload, opens new tab up to a 75% stake in Akzo Nobel India to privately held JSW Paints for $1.1 billion. It will retain full control over its local powder coatings business and research unit. The proceeds from the sale will be used to cut debt and buy back shares of the parent. The transaction comes at an opportune time for AkzoNobel, which decided last October to concentrate on coatings in key geographies. It eases the company away from a market shaken up by the entry last year of local tycoon KM Birla's Grasim Industries ( opens new tab, whose discounts to grab market share are hurting the margins of incumbents. It makes financial sense too, valuing Akzo Nobel India at 22 times EBITDA, more than twice the multiple at which the parent's Amsterdam-listed shares trade. Inspired by these sorts of punchy valuations, multinationals in India have been paring stakes in local units. British American Tobacco (BATS.L), opens new tab sold shares in ITC ( opens new tab to raise $1.5 billion last month, and U.S. appliance maker Whirlpool (WHR.N), opens new tab plans to slash its stake in its Indian business to 20% from 51%. Less benign reasons underpin other transactions. Germany's Siemens sold 90% in its loss-making wind turbine division to TPG amidst cutthroat competition. Swiss drugmaker Novartis is looking for a buyer for its Indian operations, which it says are relatively small, opens new tab compared to other geographies. The slate of assets on offer bodes well for Indian founders looking to grow through acquisitions. But it undermines India's vaunted position as a haven for global capital. Net foreign direct investment during the eight months to the end of November 2024 dropped, opens new tab to $500 million from $8.5 billion in the same period of 2023, per data from the Reserve Bank of India. Blame it on repatriations by global firms, which stood at $44.5 billion for the 12 months ended March 2024, having risen every year since March 2020. Strong valuations aren't exactly bad news. But if they wind up making India look less of a magnet for global capital, they're not uniformly good news either. Follow Shritama Bose on Linkedin, opens new tab and X, opens new tab.
Mint
20 hours ago
- Business
- Mint
JSW Paints to acquire Akzo Nobel India in ₹9,000 crore deal
Mumbai: JSW Paints said Friday it will acquire a 74.76% stake in Akzo Nobel India Ltd. from its Dutch parent Akzo Nobel N.V. and its affiliate, in a deal valued at nearly ₹ 9,000 crore. The acquisition, subject to regulatory approvals and a mandatory open offer to minority shareholders, will bring established brands like Dulux and Sikkens under the JSW umbrella. The transaction marks a significant consolidation in India's paints market, historically dominated by a handful of players. With this deal, JSW Paints is positioning itself as a serious contender behind Asian Paints and the recently aggressive Birla Opus, which has quickly scaled up to become the second-largest by capacity. 'We are excited to welcome them to the JSW family,' said Parth Jindal, managing director of JSW Paints. 'With the magic of Dulux and thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders.' Shares of Akzo Nobel India jumped more than 8% as of 11:30am (India time) on Friday, trading at ₹ 3,455.90 on the BSE. The transaction is priced at an estimated ₹ 2,639.4 per share, a 17.32% discount to Thursday's closing price, as per Mint calculations. 'This transaction is a significant milestone in the execution of our strategy. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector,' said AkzoNobel CEO Greg Poux-Guillaume. The Dutch paints maker had flagged a possible exit from India in October 2023, when it launched a strategic review of its local operations. The entry of JSW marks the second major foray by a domestic conglomerate into the Indian paints market in recent years. Until recently, the sector was led by Asian Paints, followed by Berger Paints, Kansai Nerolac and Akzo Nobel. That hierarchy has since been upended, with Birla Opus emerging as a formidable rival, and JSW now eyeing a top-four position. JSW Paints was launched in 2019 and is part of the $23 billion JSW Group. Its portfolio spans decorative and industrial paints. India's decorative and industrial paints market is projected to reach $15.04 billion by 2029, growing at a compound annual rate of 9.38% from 2024, according to an ICICI Direct report. As demand spreads beyond metro markets, competition in the sector has intensified. JSW was not the only contender. Pidilite Industries and Indigo Paints were also in the running to acquire Akzo Nobel India. Indigo, a more recent entrant that has broken into the top tier of the sector, is also vying for a top-four spot.
Forbes
21 hours ago
- Business
- Forbes
Tycoon Savitri Jindal's JSW Paints To Buy Akzo Nobel's India Business In $1.6 Billion Deal
Buckets of Dulux branded paint sit stacked on a pallet at an Akzo Nobel India Ltd. paint factory in ... More Gwalior, Madhya Pradesh, India, on Thursday, June 1, 2017. Photographer: Udit Kulshrestha/Bloomberg JSW Paints—backed by tycoon Savitri Jindal and her family—has agreed to buy a majority stake in Akzo Nobel's India business in a deal valued at €1.4 billion ($1.6 billion), including debt, doubling down on the industry despite intensifying competition. Under the deal, Amsterdam-based Akzo Nobel will receive €900 million cash from the sale, while the rest of the proceeds will be used to pay down debts, according to a joint statement released on Friday. 'With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector,' Greg Poux-Guillaume, CEO of Akzo Nobel said in the statement. The deal is subject to regulatory approval. JSW will also need to make a mandatory tender offer for the remaining shares in Akzo Nobel India, the maker of Dulux paints. 'We aspire to build the paint company of the future,' Parth Jindal, managing director of JSW Paints, said in the statement. 'With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders'. JSW Paint is expanding even as competition in the industry is heating up. Earlier this month, Reliance Industries sold most of its Asian Paints shares worth 77 billion rupees ($895 million). Reliance, which invested nearly 20 years ago, has been reducing its stake amid slowing demand and rising competition from new players such as billionaire Kumar Birla's Birla Opus. Jindal is the chair of JSW Group, which she inherited from her late husband, Om Prakash Jindal. She and her family have an estimated net worth of $37.9 billion, according to Forbes' real-time data. Her son, Sajjan Jindal, based in Mumbai, manages the group's major businesses, including JSW Steel, JSW Cement, and JSW Paints.
Mint
a day ago
- Business
- Mint
JSW Paints to acquire Akzo Nobel India in ₹9,000 crore deal
Mumbai: JSW Paints said Friday it will acquire a 74.76% stake in Akzo Nobel India Ltd. from its Dutch parent Akzo Nobel N.V. and its affiliate, in a deal valued at nearly ₹ 9,000 crore. The acquisition, subject to regulatory approvals and a mandatory open offer to minority shareholders, will bring established brands like Dulux and Sikkens under the JSW umbrella. The transaction marks a significant consolidation in India's paints market, historically dominated by a handful of players. With this deal, JSW Paints is positioning itself as a serious contender behind Asian Paints and the recently aggressive Birla Opus, which has quickly scaled up to become the second-largest by capacity. 'We are excited to welcome them to the JSW family,' said Parth Jindal, managing director of JSW Paints. 'With the magic of Dulux and thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders.' Shares of Akzo Nobel India jumped more than 8% as of 11:30am (India time) on Friday, trading at ₹ 3,455.90 on the BSE. 'This transaction is a significant milestone in the execution of our strategy. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector,' said AkzoNobel CEO Greg Poux-Guillaume. The Dutch paints maker had flagged a possible exit from India in October 2023, when it launched a strategic review of its local operations. The entry of JSW marks the second major foray by a domestic conglomerate into the Indian paints market in recent years. Until recently, the sector was led by Asian Paints, followed by Berger Paints, Kansai Nerolac and Akzo Nobel. That hierarchy has since been upended, with Birla Opus emerging as a formidable rival, and JSW now eyeing a top-four position. JSW Paints was launched in 2019 and is part of the $23 billion JSW Group. Its portfolio spans decorative and industrial paints. India's decorative and industrial paints market is projected to reach $15.04 billion by 2029, growing at a compound annual rate of 9.38% from 2024, according to an ICICI Direct report. As demand spreads beyond metro markets, competition in the sector has intensified. JSW was not the only contender. Pidilite Industries and Indigo Paints were also in the running to acquire Akzo Nobel India. Indigo, a more recent entrant that has broken into the top tier of the sector, is also vying for a top-four spot. Pidilite, the adhesives giant, is meanwhile pursuing in-house capacity development to enter the paints segment, with an eye on growing demand in non-urban markets, Mint reported on 27 March.
Indian Express
a day ago
- Automotive
- Indian Express
JSW Paints to buy Akzo Nobel India for $1 billion
JSW Paints Ltd, which is a part of the Sajjan Jindal group, has signed definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India Ltd (ANIL) from Dutch-based Akzo Nobel N.V. and its affiliates, for a maximum consideration under the share purchase agreement of up to Rs 8,986 crore (around $1.04 billion). The transaction is based on a total enterprise value of approximately €1.4 billion, representing earnings multiple (EV-EBITDA) of 22 times, and includes Akzo Nobel's liquid paints and coatings business in India, Akzo Nobel said. However, the India powder coatings business and International Research Centre, both currently part of ANIL, will be retained by Akzo Nobel under full ownership. 'This divestment is a first step in the strategic portfolio review announced in October 2024, aimed at focusing the company's capital and capabilities on leading positions in key global coatings markets,' Akzo Nobel said. The company, which owns the Dulux brand, has five plants located in various states. Product Range In India, the company offers a wide range of products across various segments, including decorative paints, automotive and specialty coatings, powder coatings, industrial coatings, and marine and protective coatings 'The net cash proceeds are expected to be approximately €900 million of which around €500 million will be used for deleveraging. Following closing, AkzoNobel intends to launch a €400 million share buyback programme. Akzo Nobel India has been present in India for over 70 years and currently operates in Paints and Coatings Segment. In 2008, the Indian unit became a member of the Akzo Nobel Group. Headquartered in Amsterdam, the parent firm has activities in more than 150 countries. Greg Poux-Guillaume, CEO of Akzo Nobel, said: 'This transaction is a significant milestone in the execution of our strategy. AkzoNobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector.'
