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Akzo Nobel to sell majority stake in India unit to JSW Group

27 Jun '25
2 min read
Akzo Nobel to sell majority stake in India unit to JSW Group
Pic: Akzo Nobel

Insights

  • Akzo Nobel will sell up to 75% of its stake in Akzo Nobel India Ltd to JSW Group for an enterprise value of €1.4 billion (~$1.64 billion).
  • The deal includes the liquid paints and coatings business, while Akzo Nobel retains its powder coatings and R&D centre.
  • Net proceeds of €900 million (~$1.053 billion) will support deleveraging and a €400 million share buyback.
  • Completion is expected in Q4 2025.
Akzo Nobel N.V. has signed an agreement to sell its shareholding in Akzo Nobel India Limited (ANIL) to the JSW Group, one of India’s leading diversified conglomerates. The transaction is based on a total enterprise value of approximately €1.4 billion (~$1.64 billion), representing an EV/EBITDA multiple of 22x, and includes AkzoNobel’s liquid paints and coatings business in India. The India Powder Coatings business and International Research Center, both currently part of ANIL, will be retained by AkzoNobel under full ownership.

This divestment is a first step in the strategic portfolio review announced in October 2024, aimed at focusing the company’s capital and capabilities on leading positions in key global coatings markets.

Greg Poux-Guillaume, CEO of AkzoNobel, said: “This transaction is a significant milestone in the execution of our strategy. AkzoNobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector.”

Parth Jindal, Managing Director of JSW Paints, added: “Paints & Coatings is one of India’s fastest growing sectors and JSW Paints is amongst the fastest growing paint companies. Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens. We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family - employees, customers and partners - we aspire to build the paint company of the future. With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders.”

The net cash proceeds are expected to be approximately €900 million of which around €500 million will be used for deleveraging. Following closing, AkzoNobel intends to launch a €400 million share buyback program.

The transaction involves the sale of up to 75% of shares in ANIL, and is subject to customary closing conditions including regulatory approvals. The transaction is expected to be completed in the fourth quarter of 2025.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

ALCHEMPro News Desk (RM)

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