JSW Paints, led by Sajjan Jindal, is poised to acquire the decorative paints division of Akzo Nobel in India, as reported. 

The agreement will position JSW Paints as the fourth largest participant in India's decorative paints market and second in the industrial sector. JSW Paints will purchase a 74.76 percent share from Akzo Nobel NV for Rs.9,000 crore or $1.1 billion. This equates to a value of Rs 12,000-12,200 crore for the India division.

Akzo Nobel is a multinational firm based in the Netherlands. It is one of the biggest paint companies in Europe and the owner of the Dulux brand.

Significantly, Akzo Nobel had been extensively reviewing its portfolio in South Asia and was considering the sale of its decorative division.

Akzo Nobel India, a publicly traded firm on Indian stock exchanges, has a market capitalization of Rs 16,380 crore, with its shares finishing at Rs 3,582 on the BSE.

The declaration of the deal involving JSW Paints and Akzo Nobel may initiate a public offer for an additional 26 percent of the latter. The ET report stated that JSW Paints will not surpass the 75 percent stake threshold.

The two firms are striving to complete the agreement, and it could be disclosed by mid-June, during the 30-day exclusivity timeframe.

If the deal goes through, it will bring JSW Paints nearer to the Rs 10,000 crore revenue threshold, making it a candidate for a potential IPO.

 

Also Read: Indian Railways Lucky Yatra to Curb Ticketless Travel

Currently, Akzo Nobel India stands as the fourth-largest paint company in the nation. It is estimated to hold a market share of 7 percent. Akzo Nobel India operates in various segments of paints and coatings, including decorative paints, automotive and specialty coatings, industrial coatings, as well as marine, protective, yacht, and powder coatings.