Shares of Akzo Nobel India will be in focus on Wednesday, November 12, after the company announced that it has entered into two key agreements with its parent company, Akzo Nobel N.V., as part of the ongoing transition process linked to the proposed acquisition by JSW Paints Limited.
In its regulatory filing, Akzo Nobel India stated that the Board of Directors, at a meeting held earlier today, approved the signing of an Intellectual Property License Amendment and Consolidation Agreement (IPLA) and a Corporate Brand License Agreement (CBLA) with Akzo Nobel N.V. The agreements are designed to ensure business continuity and safeguard the company’s operating framework during the transition phase following the proposed stake acquisition.
Details of the Intellectual Property License Agreement
Under the IPLA, Akzo Nobel India will continue to use certain intellectual property rights — including copyrights, patents, domain names, trademarks, and know-how — on a royalty-bearing license basis.
The agreement enables the company to manufacture, distribute, and sell performance coatings across India, Bangladesh, Bhutan, Nepal, and Sri Lanka as it did prior to the proposed transaction. The IPLA also allows Akzo Nobel India to sub-license these rights to its affiliates or third parties, under the terms of the agreement. The transaction has been undertaken at arm’s length, and there will be no impact on management or control of the listed entity following the execution of the agreement.
Corporate Brand License Agreement and transitional use
The company also signed a Corporate Brand License Agreement (CBLA) with its parent, Akzo Nobel N.V., which permits the use of the ‘Akzo Nobel’ and ‘ICI’ corporate brands for a transitional period of 15 months from the date of completion of the JSW transaction.
The CBLA allows royalty-free usage of these trademarks in India, Nepal, Bhutan, Bangladesh, and Sri Lanka. The company is expected to phase out the Akzo Nobel brand within the transition period. Akzo Nobel India clarified that the arrangement is not at arm’s length, as it will incur costs related to rebranding while the derived value from the Akzo Nobel brand diminishes.
Both the Audit Committee and the Board of Directors have approved the agreement, which does not impact management or control of the company.
Background and board meeting update
The agreements follow Akzo Nobel India’s earlier disclosure on June 27, 2025, regarding a share purchase agreement (SPA) between Imperial Chemical Industries Limited and Akzo Nobel Coatings International B.V. (collectively the sellers) and JSW Paints Limited (acquirer) for the purchase of their entire shareholding in Akzo Nobel India.
The company confirmed that the Board meeting concluded at 8:00 a.m. today.
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