JSW Paints seeks CCI nod to acquire majority stake in Akzo Nobel India for Rs 12,915 crore

New Delhi: Sajjan Jindal-led 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 Akzo Nobel India Ltd by 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 $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.