Blackstone Eyes $1.2 Billion Deal for AkzoNobel India’s Paint Business

Global investment busiеss Blackstone has biddеd for thе paint unit of AkzoNobel India in a dеal worth of around $1.2 billion, according to rеports. The offer is non-binding at this stage, reported Business Standard, indicating that discussions are at an early stage.

This possible purchase comes in line with Blackstone’s wider investment strategy in India, where the company looks to invest more than $100 billion in key sectors, including healthcare and consumer retail. The action reflects the increasing interest of global investors in India’s growing market.

Dutch parent AkzoNobel NV now holds a 74.76% stake in its Indian unit. It has also suggested plans to sell its International Research Centre, indicating a more extensive reorganization plan. The report said apart from Blackstone, other large players such as Pidilite and JSW Group have also shown interest in the paint business.

If AkzoNobel chooses to proceed with Blackstone’s proposal, the asset manager will perform detailed due diligence ahead of a final binding offer. At present, however, both companies have stayed tight-lipped on the reported bid, refusing to confirm or deny it.

During its previous analyst call, AkzoNobel’s management had announced its plans to divest from the paint business in India by the end of the year but keep a 10% stake after the deal. The move is a signal of a strategic adjustment for the company as it evaluates its global business.

With competition rising for this lucrative acquisition, the next few months could see substantial changes in India’s paint sector.