Akzo Nobel up 11%

Akzo Nobel is one stock buzzing loud and clear today; this is on the back of news that JSW Paints, signed definitive agreements to acquire up to a 74.76% from the Dutch parent, Akzo Nobel N.V.

This deal was struck at Rs.8986 crore

Akzo owns the well-known ‘Dulux’ brand and this is probably one of the largest buyouts in India’s paints industry.

This buyout will now mean JSW Paints will fight shoulder-to-shoulder with Asian Paints and Berger Paints, and the Aditya Birla Group’s newly launched brand. 

As part of the transaction, JSW Paints, along with group entities JTPM Metal Traders and JSW EduInfra, will launch a mandatory open offer to acquire up to 25.24% of Akzo Nobel India’s equity from public shareholders at Rs.3,417.77 per share.

The open offer, totalling up to Rs.3,929 crore, is subject to adjustment to ensure total promoter holding stays within the 75% limit.

The stock, which had closed at Rs.3192.60, opened higher at Rs3212 and rose to an intraday day high at Rs.3533, going up almost 11%.