JSW Paints signs pact to acquire AkzoNobel India for Rs 8,986 crore

The acquisition, first reported by Moneycontrol, will make JSW Paints a major player in the decorative and industrial coatings space, subject to regulatory approvals and a mandatory open offer.

JSW Paints Limited has entered into definitive agreements to acquire up to 74.76 percent stake in Akzo Nobel India Limited from Akzo Nobel N.V. and its affiliates, for a maximum consideration under the Share Purchase Agreement of up to Rs 8,986 crores, subject to certain closing adjustments, the group said in an exchange filing on June 27.

The Proposed Transaction is subject to approval from the Competition Commission of India and the completion of a mandatory tender offer (“Open Offer”) to the public shareholders of ANIL.

On June 26, Moneycontrol was the first to report that JSW Paints would shortly sign final or definitive agreements to acquire the Indian arm of the Dulux paints maker.

Earlier on May 15, Moneycontrol was also the first to report that JSW Paints had emerged as the front-runner in a hotly contested transaction which also saw interest from a consortium of Advent International and Indigo Paints and Fevicol maker Pidilite Industries. Post May 15, an exclusivity agreement was followed between the Indian business house and the MNC.

JSW Paints is India’s fastest growing paints company and a part of the US $23 billion JSW Group, India’s leading conglomerate with diverse interests across a range of B2B and B2C sectors including steel, cement, energy infrastructure, automotives and paints. ANIL is one of India’s leading decorative and industrial paint players and part of Akzo Nobel, a global leader in decorative paints and industrial coatings headquartered in the Netherlands.

This transformative acquisition positions JSW Paints as one of the major players in the sector, which is expected to see robust growth in the years ahead.

Parth Jindal, Managing Director, JSW Paints, said, “Paints & Coatings is one of India’s fastest growing sectors and JSW Paints is amongst 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. With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders.”

Greg Poux-Guillaume, CEO of AkzoNobel, 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.”

Morgan Stanley acted as the exclusive financial advisor to JSW Paints on this transaction. Khaitan & Co. acted as the legal advisor. Deloitte acted as the financial and tax due diligence advisor. Citi advised AkzoNobel.