MUMBAI: JSW Paints will acquire about 75% stake in Dulux-owner Akzo Nobel's India unit for Rs 9,407 crore ($1.1 billion) - marking the country's biggest deal in the sector amid growing competition.

The acquisition will position JSW Paints, established by steel tycoon Sajjan Jindal in 2019, as the fourth largest player in the industry dominated by Asian Paints, Berger Paints, and Kansai Nerolac. The industry saw a new entrant in 2024 when Aditya Birla Group launched Birla Opus.JSW Paints plans to acquire an additional 25% stake from Akzo Nobel India's public shareholders through an open offer for Rs 3,929 crore, in accordance with Indian takeover regulations.

Public shareholders will receive Rs 3,418 per share in the open offer, while the Dutch firm will receive Rs 2,762 per share from JSW Paints.

JSW Paints will purchase the required number of shares from the Dutch company to maintain a 75% ownership in Akzo Nobel India, based on the response to the open offer. Upon the deal's completion, JSW Paints, a part of the $23-billion JSW Group, will become Akzo Nobel India's promoter, with the Dutch firm potentially retaining public shareholder status.

Akzo Nobel India's shares ended at Rs 3,405 per share on the BSE on Friday, up nearly 7%.

"We are excited to welcome them to the JSW family. Together, along with the Akzo Nobel India family - employees, customers and partners - we aspire to build the paint company of the future," said Parth Jindal, MD of JSW Paints and son of Sajjan Jindal.Akzo Nobel, ranked fourth globally in paint manufacturing by market value after PPG, Nippon Paint, and Sherwin-Williams, owns stakes in Akzo Nobel India through Imperial Chemicals (50.5%) and Akzo Nobel Coatings (24.3%).

Akzo Nobel entered India in 2008 by acquiring the British company Imperial Chemical Industries. Following an assessment of its South Asia operations in 2024, it decided to divest its decorative paints business in India to streamline expenses and strengthen its core coating operations.

The company will, however, continue to operate its powder coatings business and research centre in India. Akzo Nobel CEO Greg Poux-Guillaume said: "This transaction is a significant milestone in the execution of our strategy.

Akzo Nobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success." In a regulatory filing, Akzo Nobel India said post-deal, the Dutch company will execute certain corporate brand and intellectual property licensing agreements with it.

Akzo Nobel owns well-known brands like Dulux, Sikkens, International and Interpon.Amsterdam-based Akzo Nobel is likely to receive 900 million euros in net cash proceeds. It plans to use around 500 million euros to reduce debt and launch a 400-million-euro-share buyback programme.