AkzoNobel to sell Southeast Asia paints business to Nippon Paint for $1.35 billion - Reuters

Nippon Paint Holdings has reached an agreement to acquire AkzoNobel’s decorative paints business in Southeast Asia for $1.35 billion. The transaction encompasses operations across seven countries, including Vietnam, Indonesia, Malaysia, Thailand, Singapore, and Australia.

This acquisition follows previous attempts by Nippon Paint to purchase AkzoNobel’s entire residential and commercial paints unit. AkzoNobel had previously rejected multiple offers for its broader decorative paints division, which included a proposal valued at approximately €7.5 billion. Under the terms of the new agreement, AkzoNobel will retain full ownership of its global coatings activities and its business services organization.

Nippon Paint stated that the acquired units are highly promising, citing their established brand recognition, manufacturing capabilities, and robust distribution networks. The Japanese company intends to finance the purchase through a combination of cash and bank borrowings rather than issuing new shares.

The transaction is expected to be accretive to Nippon Paint’s profits once finalized. The company anticipates completing the deal by mid-2027. Following the announcement, shares in Nippon Paint rose by as much as 1.7% during early morning trading in Tokyo on Monday.

While the current deal focuses on the Southeast Asian region, it marks a partial success for Nippon Paint in its long-standing efforts to expand its footprint through AkzoNobel’s assets. Analysts noted that the price paid for these specific regional units represents a higher valuation multiple compared to the company's previous, broader acquisition offers.