Big corporate deal:JSW Paints to acquire Akzo Nobel India; Rs 12,915-cr deal to make it 4th largest player

Sajjan Jindal-led JSW Paints announced on Friday its acquisition of Akzo Nobel's India division in a Rs 12,915-crore transaction, positioning itself as the fourth-largest paint manufacturer in India.The company will acquire a 74.76 per cent ownership in Dulux paint manufacturer Akzo Nobel India for Rs 8,986 crore, followed by an open market offer to purchase an additional 25 per cent stake valued at Rs 3,929.06 crore, according to a PTI report."JSW Paints today (Friday) entered into definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India from Akzo Nobel NV and its affiliates, for a maximum consideration under the share purchase agreement of up to Rs 8,986 crore," it said.Akzo Nobel NV confirmed through a global announcement that it has finalised an agreement to transfer its shareholding in Akzo Nobel India Ltd (ANIL) to the JSW Group.The acquisition requires approval from the Competition Commission of India and completion of a mandatory tender offer to ANIL's public shareholders.JSW Paints, a subsidiary of the $23 billion JSW Group, stands as India's most rapidly expanding paints manufacturer, according to an ANI report. The JSW Group has extensive operations across various sectors, including steel, cement, energy infrastructure, automotives and paints.ANIL holds a significant position in India's decorative and industrial paints sector. It operates as a subsidiary of Akzo Nobel, a Netherlands-based international corporation specialising in decorative paints and industrial coatings.Parth Jindal, Managing Director, JSW Paints, said, "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 some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens."He continued, "We are delighted to incorporate them into the JSW family. In collaboration with the Akzo Nobel India team - including staff, clients and associates - we aim to establish the next generation paint organisation."Greg Poux-Guillaume, CEO of AkzoNobel, said: "This transaction is a significant milestone in the execution of our strategy. AkzoNobel 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."The transaction received professional support from Morgan Stanley as the exclusive financial advisor to JSW Paints. Khaitan & Co. provided legal advisory services, whilst Deloitte conducted financial and tax due diligence.