JSW Paints launches open offer for Akzo Nobel India at INR 3,417.77 per share.

JSW Paints launches open offer for Akzo Nobel India at INR 3,417.77 per share.

In a significant development for the Indian paint industry, JSW Paints has initiated an open offer to acquire the remaining stake in Akzo Nobel India. The offer price stands at INR 3,417.77 per share, a figure that reflects the ongoing strategic realignment in the sector.

The move comes on the heels of Akzo Nobel's decision to exit the Indian market by selling its entire stake in Akzo Nobel India to JSW Paints. The deal, valued at INR 89.86 billion ($1.05 billion), saw JSW Paints assume a 74.76% stake in the firm, with an additional contingent consideration of up to INR 4.47 billion [1].

JSW Paints, a subsidiary of the $23 billion JSW Group, was launched in 2019 and has two operational plants in India. The acquisition of Akzo Nobel India will further bolster JSW Paints' market presence and production capabilities.

The deal is subject to approval from the Indian antitrust regulator, the Competition Commission of India. If approved, the acquisition will consolidate JSW Paints' position in the Indian market, potentially impacting competitive dynamics and market share distribution.

Investors and financial professionals are closely monitoring the developments, with the open offer price indicating a premium over the current market valuation of Akzo Nobel India shares. The success of this acquisition could set a precedent for future consolidation efforts in the Indian paint industry.

References:
[1] https://www.marketscreener.com/quote/stock/AKZO-NOBEL-N-V-52889987/news/Dulux-parent-Akzo-Nobel-exits-India-with-1-1-billion-asset-sale-to-JSW-Paints-50348679/