The green light from the antitrust body comes as JSW Paints pushes ahead with its ambitious entry into the top echelons of India’s decorative paints market.
The deal, first announced on June 27, involves Sajjan Jindal’s JSW Paints acquiring a 74.76% stake in Akzo Nobel India—maker of the Dulux brand—for a consideration of Rs 8,986 crore, with an open offer to acquire an additional up to 25% stake from the public for Rs 3,929.06 crore, bringing the total transaction size to Rs 12,915 crore.
If fully executed, the acquisition will make JSW Paints the fourth-largest player in India’s paint industry.
Akzo Nobel had earlier revealed that its decision to sell its India unit to JSW Paints was guided by a strategic objective to blend global product expertise with local market execution.
The company believes JSW’s domestic scale, execution capabilities, and understanding of the Indian market will unlock greater value than it could as a standalone multinational in India. This move effectively positions JSW Paints to compete directly with top-tier players like Asian Paints, which has already been facing margin pressures amid high raw material costs and intensified competition from rivals, including from Kumar Mangalam Birla’s Birla Opus.Speaking on the rationale behind the decision, Akzo Nobel CEO Greg Poux-Guillaume had said, “We had options. It was really about finding not only the right home for our people but the right partner for our company, and we chose JSW.”He emphasised that while Akzo Nobel had strong brands and product quality, it lacked the “local firepower” to fully capitalise on India’s vast market potential. “As a multinational, we were at times distracted. What we missed was the ability to take that promise and transform it into business and market share,” he added.
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The Akzo Nobel CEO further expressed confidence in JSW’s ability to scale, citing the JSW Group’s success across diverse industries. “Combining our business with theirs, under Parth Jindal’s leadership, will take this to another level,” he noted.
On Tuesday, shares of Akzo Nobel closed flat at Rs 3,383.20 on the BSE.
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