Berger Paints Pursues Acquisition of Akzo Nobel's India Stake: CNBC-TV18 Report

Berger Paints is reportedly making a bid to acquire Akzo Nobel's India stake as the latter’s promoters plan to exit the Indian market by selling their 74.6% shareholding, according to CNBC-TV18 on January 7.

Other contenders for the Dulux maker’s stake include JSW and Indigo Paints, as reported by the channel.

At 1:35 PM IST, Akzo Nobel India's shares saw a 7% surge, trading at ₹3,657.55 per share.

The deal's structure—whether a full cash payment or a hybrid model—is still under discussion, with the deal value estimated at ₹10,000–12,000 crore, CNBC-TV18 added. Akzo Nobel India's market capitalisation stands at around ₹16,000 crore.

Akzo Nobel’s Presence in India

Akzo Nobel is well-known in India for its Dulux brand, which offers a wide range of premium interior and exterior paints, emulsions, enamels, primers, and decorative coatings. The company is active across various segments, including decorative paints, automotive and specialty coatings, industrial coatings, and powder coatings.

Berger Paints' Interest in the Acquisition

On November 6, 2024, Berger Paints told CNBC-TV18 that they are open to considering Akzo Nobel’s stake if a sale is confirmed. While Berger typically focuses on smaller acquisitions, they have indicated their willingness to explore this opportunity.

Powder Coatings Business Sale Proposal

Akzo Nobel India recently announced that its board has approved a proposal to explore the sale of its powder coatings business and R&D operations to an indirect wholly-owned subsidiary of Akzo Nobel NV, the parent company, as per a regulatory filing.

Akzo Nobel NV has also requested its Indian arm to consider the acquisition of decorative paints-related intellectual properties owned by the parent company.

The board, in its meeting on January 6, 2025, authorized the management to begin exploratory steps to evaluate the potential transactions. However, further deliberation and approvals will be subject to compliance with applicable laws and subsequent board reviews.