Rs 94000000000 deal: Big competition in paint industry after Mukesh Ambani..., this company bought...
In a major development, paint manufacturing company JSW Paints is set to emerge as a major player in India, as the company has recently cracked a major deal. It has decided to buy a 74.7 percent stake in the India unit of Akzo Nobel. The Rs 9,403.22 crore deal will make JSW Paints the fourth-largest company in India's Rs 90,000 crore paint market. Notably, Akzo Nobel operated its business in India under the 'Dulux' brand. The paint market in India is very competitive, and following this major deal, a proposal will also be presented to acquire a 26 percent stake from the small shareholders of the company. The open offer's price will be decided by the market regulator SEBI. Why Is It Termed As The Company's Biggest Acquisition?
According to a report by the Economic Times, on May 26, JSW Paints decided to buy Akzo Nobel for a whopping amount of USD 1 billion. Notably, this is JSW's biggest acquisition deal to date. What Does The Agreement Say?
According to the agreement, Akzo Nobel with the help of two promoter companies, is going to share its stake. Out of two promoter companies, one is Imperial Chemical Industries Ltd, which holds a 50.46% stake in Akzo. The second promoter company is Akzo Nobel Coatings International B,V which has a 24.30% stake and is considered a holding/promoter company. Which Companies Were Left Behind?
Parth Jindal, head of the paint company, won the bids from a group including Indigo Paints and Advent International, as well as adhesive manufacturer Pidilite Industries. Sharing his views on the deal, he stated that acquiring the stakes of Akzo Nobel India is an opportunity for him and the company has a strong holding in the cities.
'There is no option… I have to give my all for Akzo Nobel India.' Akzo Nobel India's Dulux paints operate in the luxury and ultra-premium segment. They have a good hold in cities. This deal will greatly benefit JSW Paints in both brand name and market reach,' Parth said. Which Company's Stake Did Mukesh Ambani Sell?
Mukesh Ambani has sold his 500 crore rupee stake in Asian Paints, realising a 2200% profit after 17 years of investment. He has thus divested himself of the paint industry.
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