Berger Paints is actively looking to buy Akzo Nobel's India stake as the latter's promoters look to exit India market with sale of their 74.6% stake, reported CNBC-TV18 citing sources on January 7.
JSW, Indigo Paints are also in the fray to acquire stake in the Dulux maker, the channel reported.
Contours of the deal are to be decided whether full cash or hybrid, added CNBC-TV18, while pegging the deal value at Rs 10,000-12,000 crore.
Market capitalisation of the stock is around Rs 16,000 crore.
At 1:35 pm, Akzo Nobel India's shares were trading 7% higher at Rs 3,657.55 apiece.
In India, Akzo Nobel is well-known for its Dulux brand, offering premium interior and exterior paints, along with emulsions, enamels, primers, and other decorative coating material.
Akzo Nobel India is present in a wide range of paints and coatings segments, including decorative paints, automotive and speciality coatings, industrial coatings as well as powder coatings.
On November 6, 2024, Berger Paints told CNBC-TV18 that they are "open to looking at Akzo Nobel once they firm up their mind on exiting. Typically, we like smaller acquisitions, but open to looking at Akzo Nobel".
The paints and coatings maker on Monday said its board has approved exploring the sale of its powder coatings business and R&D operations to a separate indirect wholly-owned arm, Akzo Nobel NV, following a request by the parent firm.
"We have not received any specific information/ communication from the parent company about any such event," said Akzo Nobel in a stock exchange filing.
"At present there is no material event/ information/ development in this matter," said Berger Paints in a regulatory filing.
Akzo Nobel NV (ANNV), the parent entity of Akzo Nobel India Ltd, has requested the Board of Directors of the company to consider, evaluate and start taking exploratory steps towards a potential sale of the company's powder coatings business and its international research centre (R&D operations) to a separate indirect wholly-owned subsidiary of ANNV, the company said in a regulatory filing.
Besides, Akzo Nobel India has asked to explore the potential acquisition of decorative paints intellectual properties owned by ANNV, the company added.
"The Board of Directors of the company, at its meeting held on January 6, 2025, took note of the above said and authorised the company's management to commence exploratory steps as may be required to evaluate and examine the aforesaid potential transactions," the filing said.
The board has also mandated that the same shall be subject to further consideration and deliberation to be carried out by the Board of Directors at the relevant point in time and the procedures to be followed by the company as per applicable laws, it added.
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