Akzo Nobel shares surge 11% as JSW Paints signs deal to acquire promoter stake

Shares of Akzo Nobel India Ltd jumped on Friday after the company announced that JSW Paints Ltd has signed a share purchase agreement (SPA) to acquire the promoter stake held by Imperial Chemical Industries Ltd and Akzo Nobel Coatings International BV. The stock climbed 10.66 per cent to hit a day high of Rs 3,533.

The agreement marks a strategic shift in ownership of the already established Dulux paints maker.

Akzo Nobel India's promoters are set to sell their entire 74.76 per cent stake to JSW Paints for an estimated value of around Rs 9,400 crore. The stake will be divested by the promoters through Imperial Chemical Industries Ltd (Seller 1) and Akzo Nobel Coatings International BV (Seller 2).

In preparation for the transactions completion, Akzo Nobel has, at the request of the majority shareholders (Seller 1 and Seller 2), entered into a Standstill Undertaking with JSW Paints. The undertaking includes certain covenants and operational restrictions to be observed by the company and its subsidiaries from the date of the agreement until the completion of the transaction.

The SPA and the standstill pact are key steps toward facilitating a smooth transfer of ownership. The deal, once closed, will trigger an open offer by JSW Paints in accordance with Sebi's Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011.

This acquisition aligns with JSW Paints' broader ambition to strengthen its footprint in the decorative paints market and enhances its competitive positioning in an industry currently dominated by players like Asian Paints and Berger Paints.

Greg Poux-Guillaume, CEO of AkzoNobel, stated, "With JSW, we are confident that the business is being handed over to a long-term partner with strong ambitions in the sector and deep local expertise."

The transaction is expected to be completed in the fourth quarter of 2025, subject to regulatory approvals and closing conditions.

Parth Jindal, Managing Director of JSW Paints, said, "Akzo Nobel is home to some of the most globally renowned brands of paints and coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family." He added, "With the magic of Dulux and JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders."