JSW Paints, part of the JSW group of 23 billion dollars, said on Friday that it will acquire the participation of the majority control in Akzo Nobel India Ltd (Anil), the manufacturer of Dulux Paints, for RS 8,986 Crore.It will acquire 74.76 percent of its promoters/Dutch detention entities – i.e. the imperial chemical industries and the Akzo Nobel Coatings International BV – for a consideration of RS 8,986 crores, according to a declaration of the JSW group company.
“JSW Paints today (Friday) has entered into definitive agreements to acquire up to 74.76 percent of a participation in Akzo Nobel India by Akzo Nobel NV and his affiliates, for a maximum consideration pursuant to the purchase contract of shares up to 8,986 RS,” he said.
With this transaction, the group of Dutch promoters of Anil, who together kept 74.76 percent in the company, came out of the Indian decorative Paints market, which is witnessing the interruption with the entry of new actors as an Aditya Birla group. The agreement is subject to certain closing adjustments and regulatory approvals of the Commission for Competition of India (CCI) and the completion of an anil public shareholder open offer.
The agreement will help the JSW group to expand its game in the painting segment, in which it entered 2019 and is a relatively new player who establishes his base in the sector.
“This transformative acquisition positions JSW paints as one of the main actors in the sector, which should see a robust growth in the years to come,” he said.
The CEO of JSW Paints Parth Jindal said that Paints & Coatings is one of the rapid growth sectors of India and JSW paints are among the faster growing painting companies.
“Akzo Nobel India hosts some of the most renowned brands globally of paints and coatings such as Dulux, International and Sikkens. We are excited to welcome you to the JSW family. Together, together with the Akzo Nobel India family – employees, customers and partners – we aspire to build the paint company of the future”, he said.
Greg Poux-Guillaume, CEO of Akzonobel, said: “This transaction is a significant milestone in the execution of our strategy. Akzonobel India was a constantly strong artist and we are proud of the brand and talents who have made success. With the JSW, we are sure that the company is in the hands of a long-term partner with deep local experts and strong ambitions in the sector.
Morgan Stanley acted as JSW Paints exclusive financial consultant on this transaction, while Khaitan & Co. acted as a legal consultant and Deloitte as a consultant for two financial and tax two diligence.
In October last year, Akzo Nobel NV announced a strategic review of his portfolio in southern Asia and is looking for strategic options, including partnerships, joint ventures, mergers or assignaries. This is to distribute capital to expand its main coatings business.
Akzo Nobel India has a presence in a wide range of paints and coatings that last from decorative paints; car and special coatings; industrial coatings; Marine, protective and yacht coatings with powder coatings.
His revenues from the operations in exercise 25 were 4,091.21 crores.
Previously on February 25, Anil declared that he will transfer his business of powder coatings and the international research center (R&D) to his Dutch mother company Akzo Nobel NV in an intergroup agreement RS 2,143-COROR.
Akzonobel India had acquired the “intellectual property rights” of Akzo Nobel Coatings International BV for his decorative Paints activity in India, Bangladesh, Bhutan and Nepal for a consideration of 1,152 collar.
The Indian paint industry is dominated by players such as Asian Paints, Berger, Kansai Nerolaca and Akzonobel India. Over the past 5-6 years, several new players have entered this market, including Pidylitis with Haisha Paints, Grasim with his Opus Birla and JSW paints.
In addition, the manufacturer of Astral pipes and fittings acquired Gema and JK Cements inserted by acquiring acro paintings asking for its entry into the paint sector.
In his latest annual report, Akzo Nobel India, citing the data of the Indian Paints Association, said that the Paints & Coatings industry in the country is estimated in value of 8.5 billion dollars and 6.3 million mtpa in volume.
Discover more from gautamkalal.com
Subscribe to get the latest posts sent to your email.
Be First to Comment