This is further to the ongoing consolidation/ restructuring at Akzo Global.
The Indian entity has been in the market to sell its decorative paints business.
Now, it’s selling the power coatings business and the R&D centre to the Netherlands-based parent entity.
- Akzo Nobel N.V. (the parent) will be paying Rs 2,073 crore and Rs 70 crore for the Indian powder coatings business and R&D Centre respectively. Akzo Nobel India will be transferring the two entities on a slump sale basis as a going concern.
- The parent Company will execute the purchase through a separate wholly owned entity.
- In FY 24, the powder coating business contributed 10.70% of India entity’s revenues and the research centre 1.36%.
Separately, the Indian entity is acquiring from the parent, the intellectual property rights of Akzo Nobel India’s decorative paints business in India, Bangladesh, Bhutan, and Nepal for Rs 1,152 crore. This is obviously important for the Indian entity to conclude the decorative paints business deal with a potential suitor.