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These transactions will enable Akzo Nobel India to focus on its liquid paints and coatings business and become a fully brand-and-technology-independent company for its core decorative paints business.
Shares of Akzo Nobel India, the Indian unit of AkzoNobel N.V., a Dutch multinational company engaged in the global paints and coatings business, rose 1.42 per cent to touch the day's high of Rs 3,350 on Tuesday, February 25. The stock surged after the company's board approved the slump sale of two of its divisions.
Akzo Nobel India announced that its board of directors has accepted a binding offer from AkzoNobel N.V. to acquire the company's powder coatings business and International Research Centre (R&D) for Rs 2,073 crore and Rs 70 crore, respectively.
The transaction also includes the sale and transfer of intellectual property rights for the decorative paints business in India, Bangladesh, Bhutan, and Nepal for Rs 1,152 crore, the company stated in a late evening disclosure. This transaction will enable Akzo Nobel India to concentrate on its liquid paints and coatings business while becoming a fully brand-and-technology-independent company in its core decorative paints segment.
Each slump sale transaction is expected to be completed on or before December 31, 2025, subject to necessary shareholder, regulatory, statutory, and other approvals. A slump sale refers to transferring one or more company divisions in exchange for a lump sum consideration rather than assigning separate values to individual assets.
Founded in 1954, Akzo Nobel India Ltd manufactures, trades, and sells paints and related products. It also provides research and development services to its holding company and other group entities. As a part of the Akzo Nobel Group, the world's largest coatings company, Akzo Nobel India plays a crucial role in supplying protective and decorative solutions.
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The stock currently trades at Rs 3,300.45, with a market capitalization exceeding Rs 15,083 crore. In 2025, the stock price has witnessed a modest correction of 7.38 per cent on a year-to-date basis, compared to the benchmark Sensex's decline of 5 per cent.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.