Race for Akzo Nobel’s India business heats up as Blackstone, other PE firms join race

The race to acquire the India business of Dutch multinational paint company Akzo Nobel NV has intensified further with the entry of global investment firm Blackstone, according to industry sources. Besides Blackstone, three other US-based private equity (PE) funds have shown interest in acquiring a controlling stake in the Akzo Nobel India business, in which rival paint makers such as JSW Paints and Pidilite Industries are already in the fray.

The PE funds, which include Blackstone, Warburg Pincus, global investment firm Carlyle Group, and Jersey-based CVC Capital Partners, are not only looking at the India business of Akzo Nobel, which operates in the decorative paint segment with brand ‘Dulux’ but also for its entire South Asia business.

Akzo Nobel’s South Asia business includes India and neighbouring markets such as Pakistan, Nepal, and Sri ..

Some of the big names such as Aditya Birla Group’s Birla Opus and Berger Paints have opted out of the race to acquire Akzo Nobel’s India paint business.

Moreover, Asian Paints, which dominates the Indian Paints industry with majority market share, is also reluctant as it may face regulatory hurdles from fair trade regulator CCI, the sources said.

JSW Paints, part of Sajjan Jindal-led diversified conglomerate JSW Group is in a race in association with PE firm TPG to acquire the majority stake from the parent Dutch firm.

Besides Pidilite — a new player in the Indian paints industry — Pune-based Indigo Paints are also believed to be in the race to acquire a 74.76 per cent stake held by Akzo Nobel in its India business through several entities.