The company says that apart from the consideration payable for the transaction at completion, there are also certain contingent consideration amounts that may become payable
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.
“Akzo Nobel India 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. Together, along with the Akzo Nobel India family, employees, customers and partners, we aspire to build the paint company of the future,” stated Parth Jindal, Managing Director, JSW Paints.
This transformative acquisition positions JSW Paints as one of the major players in the sector, which is expected to see healthy growth in the years ahead. Morgan Stanley acted as the exclusive financial advisor to JSW Paints on this transaction. Khaitan & Co. acted as the legal advisor. Deloitte acted as the financial and tax due diligence advisor, as per the official statement.
“This transaction is a significant milestone in the execution of our strategy. Akzo Nobel 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,” noted Greg Poux-Guillaume, Chief Executive Officer (CEO) of AkzoNobel.
The proposed 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.
