JSW Paints is set to acquire a 74.76% stake in Akzo Nobel India (ANIL) from Akzo Nobel NV for ₹8,986 crore. This acquisition will significantly boost JSW Paints' market position, potentially making it the fourth-largest paint manufacturer in India. The deal is still pending regulatory approvals from the Competition Commission of India and is subject to a mandatory tender offer to ANIL's public shareholders.
The acquisition is a strategic move for JSW Paints, a subsidiary of the $23 billion JSW Group. This acquisition will give JSW Paints access to Akzo Nobel India's well-established brands, including Dulux. JSW Paints aims to leverage ANIL's strong market presence to build a next-generation paint company.
The deal concludes months of exclusive negotiations, outbidding competitors like Indigo Paints, Advent International, and Pidilite Industries. The Indian paint industry is experiencing substantial growth, driven by increased housing activity and rising discretionary incomes. The acquisition will trigger an open offer for a 26% stake from minority shareholders, as per SEBI regulations. The open offer price will be based on Thursday's closing share price of Rs 3,213.
Akzo Nobel India, operating under the 'Dulux' brand, has been present in India for over 70 years. However, recent subdued demand and increasing competition have impacted its performance. In February 2025, Akzo Nobel India hived off and agreed to sell its powder coatings business to its Dutch parents, which somewhat reduced the attractiveness of the deal for potential buyers.
The Indian paint market is highly competitive, with major players such as Asian Paints, Birla Opus, Berger Paints, and Kansai Nerolac. The entry of Aditya Birla Group's Birla Opus has further intensified competition. JSW is looking for significant gains with this acquisition. It turned profitable at an operating level for the first time in FY24, with an operating margin of 3%. Acquiring Akzo Nobel India will bring it closer to competing with Kansai Nerolac in the decorative segment.
The transaction represents an EV/EBITDA multiple of 22x and includes AkzoNobel's liquid paints and coatings business in India under the Dulux brand. Following the closing of the deal, AkzoNobel intends to launch a €400 million share buyback program. The transaction is expected to be completed in the fourth quarter of 2025.
This acquisition marks one of the largest deals in the Indian paints sector. It gives JSW Paints a strong competitive edge as it takes on established players like Asian Paints, Berger Paints, and Aditya Birla Group. The deal is expected to significantly scale JSW Paints' presence in the premium decorative and industrial paints market.
