The company notes that the transaction was executed through a bulk deal at a price of Rs 3,651 per cent, amounting to a total deal value of around Rs 734 crore
Marking its exit from Akzo Nobel India, Asian Paints has sold its entire holding of 20,10,626 equity shares in the company, representing 4.42 per cent of its paid-up share capital, as per a regulatory filing.
The company stated that the transaction was executed through a bulk deal at a price of Rs 3,651 per cent, amounting to a total deal value of around Rs 734 crore. The development comes amid an increased degree of competition in the paints sector.
Earlier, JSW Paints has entered into definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India from Akzo Nobel NV and its affiliates, for a maximum consideration under the Share Purchase Agreement (SPA) of up to Rs 8,986 crore, the company said in a statement.
The company highlighted that apart from the consideration payable for the transaction at completion, there are also certain contingent consideration amounts that may become payable, totalling up to Rs 447 crore. The transaction is subject to approval from the Competition Commission of India (CCI) and the completion of a mandatory tender offer (open offer) to the public shareholders of Akzo Nobel India.
On the other hand, the Competition Commission of India (CCI) has ordered a formal investigation against Asian Paints, after Birla Opus, the Paints venture of Aditya Birla Group, filed a complaint accusing Asian Paints of abuse of dominant position
The commission also stated that by restraining suppliers of essential raw materials from providing goods and services to the its competitors, as well as by coercing landlords, C&F agents and transporters to refrain from engaging with competitors, Asian Paints seems to be prima facie creating barriers to new entrants in the market as well as partially foreclosing competition in the market.
