Akzo Nobel grants extension for powder coatings demerger deal execution

Akzo Nobel India Ltd board has approved a request from its parent Akzo Nobel N.V. to extend the timeline for executing definitive agreements related to the proposed demerger of its powder coatings and international research centre businesses, the company said in a statement to the stock exchanges.

 

The Dutch parent has sought an extension until July 1, 2025, according to a regulatory filing, citing ongoing efforts to finalise schedules and ancillary documents and pending approval from its supervisory board.

 

The original deadline was May 1, 2025, as outlined in the binding offer letter dated February 24, 2025. The Dutch parent wants to sell the company in an auction which has attracted offers from JSW group, Pidilite and Indigo Paints with tie up from private equity companies.

 

 

Under the revised timeline, all terms and conditions of the original offer remain unchanged.

 

If the agreements are not executed by July 1 due to non-receipt of internal approvals, Akzo Nobel N.V. has committed to reimbursing Akzo Nobel India for all reasonable costs incurred in connection with the transaction process.

 

The parent has also established a wholly-owned subsidiary —Akzo Nobel Powder Coatings India Pvt. Ltd — on March 4, 2025, to serve as the acquiring entity in the transaction.

 

The audit committee and the board of directors of Akzo Nobel India reviewed the extension request in meetings held on Wednesday and the board approved the extension.