Sajjan Jindal-led JSW Paints has won the bid to acquire Akzo Nobel India after weeks of intense negotiations. JSW Paints emerged as the frontrunner, beating Advent International and Indigo Paints to acquire the India business of Netherland-headquartered Akzo Nobel, the Economic Times reported, citing sources. The development is significant as it will help JSW Paints to meet its Rs 10,000 crore revenue target, ahead of its potential public issue in 2025.
The two paint companies have reportedly entered into an exclusive contract to further finalise the terms and conditions of the deal, including the share purchase agreement. Post this, the companies are likely to make an official announcement.
The listed Akzo Nobel India’s current market value stood at Rs 15,857.14 crore and JSW Group’s offer is said to be at a 5-8% discounted market price. The steel-to-paint conglomerate has been holding talks with global financial institutions like Standard Chartered Bank, MUFG and Barclays to finance the acquisition, the Economic Times reported. The company is reportedly in touch with Ares Capital, KKR, Goldman Sachs and Apollo Global Management for Rs 4,000-4,500 crore of structured funding, whereas the Sajjan Jindal-led conglomerate is likely to pump Rs 2,500-3,000 crore as equity.
If the deal is sealed, it will place Sajjan Jindal-led JSW Group’s paints company at fourth position in the decorative segment and second in the industrial section.
The acquisition is set to help JSW Group to strengthen its position in the paints industry. Earlier in January this year, JSW Paints MD Parth Jindal had commented that the Akzo Nobel India business sale is an “exciting opportunity”.
“There is no choice... I have to give everything I’ve got for Akzo Nobel India,” Parth Jindal had said.
This comes at a time when India’s paint industry is set to grow at a CAGR of 9.38%, from $10.46 billion in 2025 to $16.37 billion in 2030, according to the Mordor Intelligence report.
