Paint companies of all hues line up for Akzo Nobel India
JSW Paints, Berger and Indigo Paints submitted non-binding bids for the acquisition of Akzo Nobel India, the owner of Dulux Paints, earlier this week, said people aware of the matter. The industry is looking to consolidate following the entry of Aditya Birla Group into the estimated $9 billion paints sector last year.
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All four aim to initiate management meetings with parent Akzo Nobel NV (ANNV) at the company's Dutch headquarters starting next week. Akzo Nobel NV holds a 74.76% stake in Akzo Nobel India.
In January, ANNV proposed a strategic evaluation of its powder coatings business and international research centre. This involved the sale of these assets to an indirect, wholly owned subsidiary of ANNV, Akzo Nobel India had said in a regulatory filing. It also included Akzo Nobel India potentially acquiring the decorative paints' intellectual property owned by ANNV. Subsequently, after the company mandated Citi to evaluate strategic options, ANNV decided to sell its Indian operations.
The Indian unit of Akzo Nobel has a market capitalisation of ₹17,531 crore. The stock has surged 47% in the last 12 months in anticipation of a sale. It ended at ₹3,849.70 on the BSE on Friday. The sale of ANNV's stake would translate to a deal size of about ₹13,107 crore at the
