In a landmark deal within the global paints and coatings industry, Akzo Nobel N.V. has signed a definitive agreement to sell up to 75% stake in Akzo Nobel India Limited (ANIL) to JSW Group, one of India’s most prominent diversified conglomerates. The transaction, valued at approximately €1.4 billion, marks a significant shift in AkzoNobel’s global strategy and underscores JSW’s growing ambitions in the paints and coatings sector.
The deal values ANIL at an EV/EBITDA multiple of 22x, and covers AkzoNobel’s liquid paints and coatings business in India. However, AkzoNobel will retain its Powder Coatings division and International Research Center in India.
Strategic Portfolio Realignment
This divestment is part of AkzoNobel’s broader portfolio review initiative announced in October 2024, aimed at sharpening its focus on key global coatings markets. Greg Poux-Guillaume, CEO of AkzoNobel, said:
“This transaction is a significant milestone in the execution of our strategy. Akzo Nobel 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.”
Following the closing of the transaction, AkzoNobel expects to receive net cash proceeds of approximately €900 million, of which €500 million will be used for deleveraging, and €400 million will be returned to shareholders via a share buyback program.
JSW Paints’ Strategic Leap
For JSW Group, this acquisition significantly boosts its presence in India’s fast-growing decorative and industrial paints market. Parth Jindal, Managing Director of JSW Paints, commented:
“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 globally renowned brands like Dulux, International and Sikkens. With the Magic of Dulux and the Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders.”
Transaction Details
The agreement involves a share purchase from AkzoNobel’s promoter entities, namely Imperial Chemical Industries Limited (holding 50.46% in ANIL) and Akzo Nobel Coatings International B.V. (holding 24.30%). Both entities will sell their entire holdings to JSW Paints, subject to regulatory and public shareholder participation under SEBI’s takeover rules.
The per-share consideration has been set at ₹2,762.05, with adjustments as per agreement terms. A mandatory open offer will be launched by JSW Paints, following which it may hold up to 75% of ANIL. Post-transaction, JSW Paints will be classified as the new promoter, and the current promoter entities will be reclassified as public shareholders.
Regulatory and Closing Conditions
The transaction is subject to:
- Approval from the Competition Commission of India (CCI)
- Completion of the mandatory open offer
- Fulfillment of standard closing conditions and standstill covenants
Upon completion, Akzo Nobel N.V. and its affiliates will enter into brand and IP licensing agreements with the Company. These will be disclosed separately once finalized.
The deal is expected to close in Q4 2025, marking one of the largest inbound strategic investments in India’s paints sector to date.