Today, JSW Paints Ltd. has announced in an exchange filing that it has signed an agreement with AkzoNobel India Ltd. (ANIL) to acquire 74.76% stakes of the latter from Akzo Nobel N.V. and its affiliates. The maximum consideration decided under the share purchase agreement is ₹8986 Crore, which is subject to closing adjustments. The Competition Commission of India (CCI) has yet to approve the transaction, and the mandatory tender offer or Open Offer to the shareholders is yet to be completed.
JSW Paints & AkzoNobel India Ltd.
To understand the deal better, let’s dig a bit into the company profiles. JSW Paints, as the name suggests, is one of the largest paint manufacturers in the country. It is a part of the whopping $23 billion JSW Group. Apart from paints, JSW engages in diverse businesses such as cement, steel, automotives, energy infrastructure, and others. JSW Paints deals in the B2B and B2C segments.
On the other hand, ANIL is one of the renowned companies in the country offering decorative and industrial paint services. It is a part of Akzo Nobel, which has its headquarters in the Netherlands. The brands like Dulux, Sikkens, and others are under AkzoNobel India.
Impact of this Acquisition
Experts are suggesting that this acquisition by JSW Paints is an iconic one, and it can help the company achieve significant growth in the future years. As JSW Paints is from one of the fastest-growing sectors in the country, it can further drive more growth owing to this acquisition.
JSW Paints expects this JSW Paints Akzo Nobel acquisition to be a great amalgamation of the magic of Dulux with the thoughtfulness of JSW Paints. They anticipate this acquisition to bring more customers, offer them value for their purchases, and increase opportunities for the shareholders.
The CEO of AkzoNobel, Greg Poux-Guillaume, commented that this JSW Paints Akzo Nobel deal can be a major milestone for the execution of their business strategies. He also said that AkzoNobel has always been a strong performer, and this deal can further boost the brand as JSW Paints’ local expertise and solid brand value come along.
Wrapping up
It will be quite interesting to see how JSW Paints’ Akzo Nobel acquisition turns out on the ground. The experts are hopeful, and so are the shareholders, as JSW Holdings shares today jumped by almost 2% at around 2 p.m.
Source: MoneyControl
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.