JSW Paints has officially confirmed the acquisition of Akzo Nobel India, marking a major consolidation move in the Indian paints industry.
The company disclosed that its promoters, Imperial Chemical Industries Limited and Akzo Nobel Coatings International B.V., have executed a definitive Share Purchase Agreement (SPA) with JSW Paints.
The transaction involves JSW Paints acquiring up to the entire 74.76% promoter stake in Akzo Nobel India at ₹2,762.05 per share, representing a 16% discount to Thursday’s closing price. The deal, valued at nearly ₹9,400 crore, marks a major consolidation in the Indian paints industry.
Following the acquisition, JSW Paints will make an open offer for an additional stake as required under SEBI regulations. Subject to regulatory approvals, JSW is set to become the new promoter of Akzo Nobel India, with the sellers being reclassified to public shareholders.
This strategic move by JSW Paints aims to strengthen its position in India’s decorative and industrial paints market. The deal follows months of negotiations and earlier exclusivity agreements between JSW Paints and Akzo Nobel N.V., the Dutch multinational parent.
At the close of trading on June 25, the promoter stake was valued at around Rs 10,985 crore. However, JSW Paints has sealed the acquisition at a lower valuation as part of the strategic agreement.
The acquisition will position JSW Paints as a stronger challenger in the Indian decorative and industrial paints market, expanding its presence and scale significantly. This deal also ends months of speculation which saw strong interest from other bidders like Advent International, Indigo Paints, and Pidilite Industries. As per earlier reports, final definitive documents were expected to be signed this week, which has now been confirmed.
Industry experts believe this acquisition will reshape the competitive landscape in India’s paints sector.
