Akzo Nobel India has finalised a deal to sell its powder coatings business and International Research Centre (R&D) to its parent company, AkzoNobel N.V., for Rs 20.73 billion and Rs 700 million, respectively. The agreement also includes the transfer of intellectual property rights related to the decorative paints business in India, Bangladesh, Bhutan, and Nepal for Rs 11.52 billion.

With these transactions, Akzo Nobel India aims to concentrate on its liquid paints and coatings segment, transitioning into a fully independent entity in terms of branding and technology for its core decorative paints business.

The completion of these deals is contingent upon shareholder approval, which is expected to be sought in the coming weeks. Additionally, clearance from the supervisory board of AkzoNobel N.V. is required.

Meanwhile, AkzoNobel N.V. is in the process of divesting its decorative paints business in India. Several companies, including Blackstone, Pidilite, and JSW Paints, have expressed interest in acquiring this segment.

News source: Business Standard