Blackstone entered the bidding for Akzo Nobel’s South Asia paints business, intensifying competition with JSW Group and Pidilite.  

The sale includes operations in India, Pakistan, and Sri Lanka, with non-binding offers expected by mid-March. Additional private equity firms may join, potentially driving up valuations.

While JSW Group is taking a cautious approach, Berger Paints has exited, citing high costs. Blackstone has yet to comment. Akzo Nobel is reviewing strategic options to refocus on core coatings businesses. “South Asia presents significant opportunities, and we are in the early stages of our review,” an Akzo Nobel spokesperson said.

Bankers suggest private equity interest could raise acquisition costs, making it tougher for Indian firms. Akzo Nobel NV, the Dutch parent, announced in October that it plans to divest non-core assets, starting with its South Asia decorative paints unit.

The company aims to finalise the sale by late 2025 while keeping a 10% stake, valued at €1.3bn ($1.4bn), according to JP Morgan analysts. Akzo Nobel India’s shares, currently priced at Rs 3,309, have dropped 7% since January. Its parent company owns 74.76% of the Indian entity and prefers a full cash sale, which could influence the final outcome.