Akzo Nobel to Sell Powder Coating Business to Akzo Nobel N.V.: Received Binding Offer

On February 24, 2025, Akzo Nobel India Ltd announced through an exchange filing that it had received a binding offer from Akzo Nobel N.V. for the sale of its powder coatings business and R&D Centre.

Transaction Value

In a strategic move, Akzo Nobel will transfer the powder coatings business and the international R&D Centre on a slump sale basis, with the powder coatings business valued at ₹2,073 crore and the R&D Centre at ₹70 crore.

Additionally, Akzo Nobel India’s board has given the green light to acquire intellectual property rights from Akzo Nobel Coatings International B.V. for its decorative paints business across India, Bangladesh, Bhutan, and Nepal. This acquisition, valued at ₹1,152 crore, is based on the lower of two independent valuations.

Objective of Business Sale

The company emphasized that these transactions will sharpen Akzo Nobel India’s focus on its liquid paints and coatings business, positioning it to become fully independent in terms of branding and technology for its core decorative paints segment.

However, these moves are subject to shareholder approval, which will be sought in the coming weeks, with the voting process expected to wrap up in a month.

For the financial year 2024, Akzo Nobel India’s powder coatings business contributed ₹421.2 crore to the revenue, about 10.7% of the company’s total topline, while the R&D Centre accounted for 1.36%.

On February 25,2 205, Akzo Nobel shares rose 1.39%, reaching a day high of ₹3,339.95, after opening at ₹3,300.00

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