JSW Paints, a part of the $23 billion JSW Group, has signed a deal to acquire up to 74.76% stake in Akzo Nobel India from Dutch firm Akzo Nobel N.V. and its affiliates, for ₹8,986 crore. The proposed transaction is subject to approval from the Competition Commission of India (CCI) and the completion of a mandatory tender offer to the public shareholders of Akzo Nobel India Ltd (ANIL).

“This transformative acquisition positions JSW Paints as one of the major players in the sector which is expected to see robust growth in the years ahead,” the company said in a release.

ANIL is one of India’s leading decorative and industrial paints players and part of Akzo Nobel, a global leader in decorative paints and industrial coatings headquartered in the Netherlands. Akzo Nobel India is home to some of the most globally renowned brands of paints & coatings like Dulux, International and Sikkens.

“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. With the Magic of Dulux and Thoughtfulness of JSW Paints, we look forward to delighting customers and building lasting value for our stakeholders,” said Parth Jindal, Managing Director, JSW Paints.

Greg Poux-Guillaume, CEO of AkzoNobel, termed the deal as a “significant milestone” in the execution of the company’s strategy.  “AkzoNobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success. With JSW, we are confident the business is in the hands of a long-term partner with deep local expertise and strong ambitions in the sector.”

Last month, Fortune India had reported that billionaire Sajjan Jindal-led JSW Group was looking to acquire the Dutch paint maker’s India business as a strategic fit for its expansion ambitions of its multiple businesses. The deal is expected to help JSW Paints, which launched in 2019, to gain a stronger foothold in the high-margin decorative paints segment.

While JSW Paints has already built a strong presence in the industrial paints segment—largely due to captive consumption by JSW’s steel and power businesses—AkzoNobel’s industrial coatings will further strengthen its portfolio. Parth Jindal had stated earlier that the company aims for an 80:20 revenue ratio between decorative and industrial paints by 2025.

India’s decorative paints market, a dynamic ₹72,000 crore industry, is projected to grow at a 10% annual rate over the next decade, driven by housing demand, industrialisation, and urbanisation. Yet, incumbent paint manufacturers are grappling with a slowdown in demand and disruption triggered by the entry of Birla Opus. In 15 months, Birla Opus has captured a 21% share of the organised decorative paints segment, historically dominated by legacy players such as Berger Paints, Kansai Nerolac, and AkzoNobel India.

Morgan Stanley acted as the exclusive financial advisor to JSW Paints on this transaction. Khaitan & Co. acted as the legal advisor. Deloitte acted as the financial and tax due diligence advisor.