JSW Paints seeks CCI nod to acquire majority stake in Akzo Nobel India for ₹12,915 crore
JSW Paints
has sought approval from the
Competition Commission of India
(CCI) to acquire a majority stake in Dutch paint maker Akzo Nobel's India unit in a Rs 12,915-crore deal.
The development came after JSW Paints announced in June this year that it will buy a 74.76 per cent stake in Akzo Nobel India for Rs 8,986 crore, followed by an open offer to buy another 25 per cent from open market for up to Rs 3,929.06 crore, totalling over Rs 12,915 crore, to become the fourth-largest player in the paint industry in the country.
"The proposed transaction relates to the acquisition of up to 75 per cent shareholding in the target (Akzo Nobel India Ltd) by the acquirer (JSW Paints Ltd) through a share purchase agreement, and a mandatory open offer," according to a notice filed with the Competition Commission of India.
The parties (JSW Paints and Akzo Nobel India) said the proposed combination does not raise competition concerns in any plausible relevant markets and therefore, the relevant market delineations may be left open.
JSW Paints is a part of the USD 23 billion JSW Group, one of India's leading conglomerates with diverse interests across a range of B2B and B2C sectors, including steel, cement, energy infrastructure, automotives and paints.
Akzo Nobel India Ltd (ANIL) is a decorative and industrial paint player and part of Netherlands-headquartered Akzo Nobel.
In June, Akzo Nobel NV, in a global statement, said it has signed an agreement to sell its shareholding in Akzo Nobel India to the JSW Group.
However, the Dutch parent firm also said the India Powder Coatings business and International Research Centre, both currently part of ANIL, will be "retained by Akzo Nobel" under full ownership.
JSW Paints, with other group entities JTPM Metal Traders and JSW EduInfra, has also announced an open offer to acquire the remaining 25.24 per cent share of ANIL from the public shareholders for a total consideration of up to Rs 3,929.06 crore.
The deal will help JSW Group expand its play in the paint segment, which it entered in 2019.
JSW Paints Managing Director Parth Jindal said paints & coatings is one of India's fastest-growing sectors, and JSW Paints is among 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. We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family -- employees, customers and partners -- we aspire to build the paint company of the future," he said.
In October 2024, Akzo Nobel NV announced a strategic review of its portfolio in South Asia and is looking for strategic options, including partnerships, joint ventures, mergers or divestments. This is to deploy capital towards expanding its core coatings business.
Its revenue from operations in FY25 was Rs 4,091.21 crore.
The Indian paint industry is led by Asian Paints. Besides Berger, Kansai Nerolac, Akzo Nobel India (Dulux), Indigo Paints, Shalimar Paints, and Nippon Paints are the other top brands.
In the last 5-6 years, several new players have entered the market, including Pidilite with Haisha Paints, Grasim with its Birla Opus, and JSW Paints.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
17 minutes ago
- Economic Times
Eternal shares zoom over 7% despite 90% dip in PAT. Here's why
Eternal shares rallied over 7% as Q1FY26 revenue surged, led by Blinkit's stellar growth, even as net profit declined sharply due to ongoing investments. Eternal's Q1FY26 results showed a 70% YoY revenue surge to ₹7,167 crore, though net profit dropped 90% to ₹25 crore. The stock rose 7.55%, driven by strong growth in Blinkit's revenue, which tripled YoY to ₹2,400 crore. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The shares of Eternal today zoomed 7.55% to their intraday high of Rs 276.80 on the BSE, following a 70% YoY surge in Q1FY26 revenue at Rs 7,167 crore even as net profit plunged 90% net profit for the said period was reported at Rs 25 crore, against Rs 253 crore reported in the corresponding quarter of the previous financial in addition to the increasing revenues, the stock's rally may also be attributed to the growth of its quick commerce business, Blinkit, which posted a revenue of Rs 2,400 crore, up from Rs 942 crore, reported in the year-ago period and from Rs 1,709 crore reported in the last the food delivery segment clocked a revenue of Rs 2,261 crore in the first quarter of FY26, compared to Rs 1,924 crore in the same quarter of the last fiscal year."On the profitability front, consolidated Adjusted EBITDA declined 42% YoY to Rs 172 crore in Q1FY26, largely on account of the continuing investments in quick commerce and going-out, which were partly offset by the improvement in food delivery Adjusted EBITDA margin (as a % of NOV) to 5.0% from 3.9% a year ago," the company informed in its filing to the profit after tax (PAT) fell 36% on a quarter-on-quarter basis versus Rs 39 crore reported in Q4FY25. The significant drop in profit was due to ongoing investments in quick commerce and the going-out read: Early Q1 results show a slowdown in revenue and profit growth for Indian companies
Economic Times
17 minutes ago
- Economic Times
US team to visit India in August for next round of talks for trade pact
Representative image. The US team will visit India in August for the next round of negotiations for the proposed bilateral trade agreement between the two countries, an official said on Monday. India and the US teams concluded the fifth round of talks for the agreement last week in Washington. "For the next round of talks, US team will visit India in the second half of August," the official said. India's chief negotiator and special secretary in the Department of Commerce Rajesh Agrawal and Assistant US Trade Representative for South and Central Asia Brendan Lynch held the deliberations. These deliberations are important as both sides are looking at finalising an interim trade deal before August 1, which marks the end of the suspension period of Trump tariffs imposed on dozens of countries, including India (26 per cent). On April 2 this year, US President Donald Trump announced high reciprocal tariffs. The implementation of high tariffs was immediately suspended for 90 days till July 9 and later until August 1, as America is negotiating trade deals with various countries. Issues related to agriculture and automobiles are learnt to have figured during the fifth round of negotiations. Matters related to ways to deal with non-market economies, and SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) also came up for discussion. On the possibility for an interim trade agreement before August 1, the official said that the talks are going on. India has hardened its position on the US demand for duty concessions on agri and dairy products. New Delhi has, so far, not given any duty concessions to any of its trading partners in a free trade agreement in the dairy sector. Certain farmers' associations have urged the government not to include any issues related to agriculture in the trade pact. India is seeking the removal of this additional tariff (26 per cent). It is also seeking the easing of tariffs on steel and aluminium (50 per cent) and the auto sector (25 per cent). These issues are an important part of the trade pact negotiations. Against these, India has reserved its right under the WTO (World Trade Organization) norms to impose retaliatory duties. The country is also seeking duty concessions for labour-intensive sectors, such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas, in the proposed trade pact. On the other hand, the US wants duty concessions on certain industrial goods, automobiles, especially electric vehicles, wines, petrochemical products, agri goods, dairy items, apples, tree nuts, and genetically modified crops. The two countries are looking to conclude talks for the first tranche of the proposed bilateral trade agreement (BTA) by fall (September-October) this year. Before that, they are looking for an interim trade pact. India's merchandise exports to the US rose 22.8 per cent to USD 25.51 billion in the April-June quarter this fiscal year, while imports rose 11.68 per cent to USD 12.86 billion.
Economic Times
17 minutes ago
- Economic Times
Rupee weakens slightly, broad dollar softness cushions pressure
The Indian rupee logged a modest decline on Monday, pressured by dollar bids from foreign and local private banks, though broad-based weakness in the greenback helped the local currency limit further losses. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Indian rupee logged a modest decline on Monday, pressured by dollar bids from foreign and local private banks, though broad-based weakness in the greenback helped the local currency limit further rupee closed at 86.2925 against the U.S. dollar, down about 0.2% on the day, after touching a near one-month low of 86.35 earlier in the currencies were flat-to-slightly higher, while the dollar index declined by nearly 0.2% to Indian rupee and the Indonesian rupiah are among the few regional currencies nursing losses on the year so far, even as their peers, such as the Taiwan dollar and the Korean won, have climbed over 11% and 6%, portfolio flows, India's external investment deficit and likely FX reserve accumulation by the Reserve Bank of India are among the reasons cited by analysts for rupee's lacklustre performance this the day, price action appeared to indicate modest outflows but dollar-buying pressure eased in the latter half of the session, helping the rupee trim its losses, a trader at a private bank benchmark equity indexes, the BSE Sensex and Nifty 50, closed higher by about 0.5% each on the day, while the benchmark 10-year bond yield was last quoted slightly lower at 6.2986%.In the near term, focus will be on developments on two fronts: how U.S. economic data impact expectations of rate cuts and news surrounding U.S.-India trade negotiations ahead of the August 1 deadline for higher U.S. tariffs to take effect."We maintain our view that slower growth, profit margin compression and export price reduction will contain the impact of tariffs, and that a slower economy will justify the Fed resuming rate cuts in September," ANZ said in a Monday note.
