After months of negotiations, due diligence, and repeated breakdowns in talks, the Packages Group and AkzoNobel are reportedly close to finalizing a deal for the sale of AkzoNobel’s Pakistan operations, according to industry sources.
Negotiating teams from both sides are currently meeting in Istanbul, where discussions are understood to be in the final stages, focusing on closing documentation and final valuation adjustments. While neither company has officially confirmed the agreement, sources describe the process as nearing completion.
The transaction, if concluded, would mark the end of a prolonged and often uncertain negotiation process that reportedly included a near-collapse just a month earlier when revised valuation proposals created a deadlock between the two parties.
According to market observers, the renewed momentum suggests that both sides have moved closer on pricing expectations, although final figures have not been publicly disclosed. The development comes amid heightened interest in the deal within Pakistan’s corporate and stock market circles.
The holding company linked to the bidder, IGI Holdings, has recently seen unusual upward movement in its share price on the Pakistan Stock Exchange, though analysts have not confirmed any direct connection to the transaction.
AkzoNobel entered the Pakistani market through the acquisition of ICI Pakistan in 2008, operating in the paints and coatings segment under globally recognized brands. Over the years, the company has faced increasing competition from informal and low-cost manufacturers, which have significantly reshaped market dynamics in the local paint industry.
Industry estimates suggest that unregulated producers now hold a dominant share of the market, intensifying pricing pressure on multinational and formal sector players operating under stricter regulatory and cost structures.
For the Packages Group, the potential acquisition represents a strategic entry into a challenging but established consumer and industrial segment. However, analysts note that the paint industry in Pakistan remains highly fragmented, with profitability pressures driven by competition, pricing practices, and input cost volatility.
A key consideration in the deal is believed to be AkzoNobel’s industrial and real estate assets in Pakistan, including its manufacturing facility in Lahore located on Ferozpur Road, a high-value urban corridor. Market participants suggest that asset value and brand legacy remain significant factors in the transaction’s overall attractiveness.
If finalized, the acquisition would mark one of the more notable corporate transactions in Pakistan’s manufacturing sector in recent years, reflecting both consolidation trends and ongoing restructuring within multinational operations in the country.
Both companies have so far declined to comment publicly on the status of the negotiations.
