
Toronto, Ontario -- A Dutch chemical company is selling a majority stake in its Indian automotive coatings business.
AkzoNobel has agreed to sell up to 75 percent of its shares in AkzoNobel India Limited to the JSW Group, one of India’s largest diversified companies. The deal valued at approximately €1.4 billion, or about CAD 2.1 billion.
The sale is part of AkzoNobel’s strategic review announced in October 2024 to focus on its strongest global coatings markets and improve its financial position. The company aims to concentrate its capital and expertise in areas where it has leading positions.
By selling a majority stake in its Indian liquid paints and coatings business, AkzoNobel can free up capital to invest in growth markets and reduce debt. The transaction is expected to bring in around €900 million (about CAD 1.35 billion) in net cash proceeds, with approximately €500 million (about CAD 750 million) earmarked for debt reduction. Following closing, AkzoNobel plans to launch a €400 million (about CAD 600 million) share buyback program.
AkzoNobel will keep full ownership of its India Powder Coatings business and the International Research Center, both currently part of ANIL, allowing the company to maintain innovation capabilities and a presence in key Indian market segments.
“This transaction is a significant milestone in the execution of our strategy," AkzoNobel chief executive officer Greg Poux-Guillaume said in a press release. "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: “AkzoNobel 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 AkzNobel India family -- employees, customers and partners -- we aspire to build the paint company of the future."
The deal includes AkzoNobel’s liquid paints and coatings business in India but excludes the powder coatings business and research centre. The sale is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the fourth quarter of 2025.
The coatings industry has seen significant consolidation in recent years as companies seek to strengthen their global positions and expand into high-growth markets. Sherwin-Williams completed its acquisition of Valspar in 2017 for approximately US$11.3 billion (about CAD 15 billion), creating one of the largest coatings companies worldwide. The deal allowed Sherwin-Williams to broaden its product portfolio and geographic reach, particularly in industrial and architectural coatings.
PPG Industries, another major player, acquired AkzoNobel’s global powder coatings business in 2021 for €1.5 billion (around CAD 2.25 billion). This acquisition helped PPG expand its footprint in the fast-growing powder coatings segment, known for its environmental benefits and performance advantages. The deal also aligned with PPG’s strategy to focus on specialty coatings with strong growth potential.
Nippon Paint Holdings, a leading Asian coatings company, has pursued a series of acquisitions to boost its international presence. In 2019, Nippon Paint acquired Dunn-Edwards, a U.S.-based architectural coatings company, for US$1 billion (about CAD 1.3 billion). This move helped Nippon Paint strengthen its position in the North American market and diversify its product offerings.
AkzoNobel itself has made several strategic acquisitions over the years to build its global coatings portfolio. In 2019, the company acquired the decorative paints business of Chemoxy International to enhance its specialty chemical capabilities. These deals have supported AkzoNobel’s focus on innovation and premium brands in the coatings sector.
These recent transactions reflect broader trends in the coatings industry, where companies are focusing on premium products, sustainability, and geographic expansion. The sale of AkzoNobel India to JSW Group fits this pattern by enabling AkzoNobel to sharpen its strategic focus while giving JSW an opportunity to grow in India’s rapidly expanding paints and coatings market.