Berger Paints Limited is now preparing to buy the Indian stake of Akzo Nobel. Sources familiar with the matter said that AkzoNobel’s global promoters want to exit the Indian market, where they have 74.6% stake. Sources also said that Burger Paint’s peer companies JSW Paints and Indigo Paints are also in the race to buy the Indian stake of Akzo Nobel promoters.
However, it has not been decided yet whether this deal will be entirely in cash or it will be in a mixed format. According to sources, the valuation of this deal can be between Rs 10,000 crore to Rs 12,000 crore. The market capital of AkzoNobel’s Indian unit is Rs 16,000 crore. Emails sent to Akzo Nobel and Berger Paints in this regard did not receive any response.
A representative of Berger Paints, while talking to CNBC-TV18 on November 6 last year, had said that the company is in the race to buy the promoter stake of Akzo Nobel, provided the promoters of Akzo Nobel decide to exit. The management also said that generally the company considers the option of small acquisitions, but it also intends to buy a stake in Akzo Nobel.
Akzo Nobel had told stock exchanges on January 6 that its international promoter has given board approval to sell the power coatings business and international research and development operations to a separate indirect subsidiary.