Akzo Novel India, the paints and coatings firm has said that it has signed an agreement to divest its specialty chemical business as a going concern to an affiliate of the Akzo Nobel Group for INR 320 crore. The definitive agreement for sale of the business to Akzo Nobel Chemicals India Pvt Ltd has been executed on the 15th February 2018. This transaction will be completed by 31st March 2018.3

In November 2017, it said it would sell the specialty chemicals business for INR 320 crore, this business includes the Mahad manufacturing facility for the polymer chemistry products. The business handles a trading portfolio in polymer and surface chemistry products which are sourced from other units of Akzo Nobel. About 80 employees who are working with the business will be transferred under the deal.

The total consideration to be received will be INR 320 crore subject to the adjustment for working capital and for an economic effective date of 1st January 2018. It announced this intention to separate the specialty chemicals business from the paints and coating business in order to create a focused and separate business. The company mentioned that the board of directors believes this to be in the best interest of its shareholders, employees and customers that the India specialty business is divested to the specialty chemicals global entity.