Need to Know

• Pakistan’s competition regulator authorized IGI Investments’ acquisition of Akzo Nobel Pakistan in a Phase I order dated Aug. 4.
• The review covered decorative and industrial coatings markets in Pakistan and found no horizontal overlap or vertical relationship.
• AkzoNobel previously valued the transaction at approximately PKR 16.2 billion, or €50 million.

According to the order, the transaction creates no horizontal overlap or vertical relationship between the parties in the relevant markets. The regulator concluded that the acquisition would not increase market concentration, create or strengthen a dominant position or substantially reduce competition.

AkzoNobel announced the proposed sale in April. IGI Investments is part of Packages Group, a diversified Pakistani business group. The transaction is based on an enterprise value of PKR 16.2 billion, or approximately €50 million.

Akzo Nobel Pakistan is primarily a decorative-paints business. AkzoNobel said future coatings activities conducted under Packages Group ownership will be subject to royalty payments. The divestment forms part of AkzoNobel’s broader portfolio review and effort to focus resources on selected global markets.

Competition approval does not complete the sale. AkzoNobel originally expected the transaction to close during the second half of 2026, subject to customary conditions, and has not announced completion.

The divestment is relevant to PCI readers following architectural coatings and the reshaping of global decorative-paint portfolios.