Dulux maker AkzoNobel has agreed to sell its Southeast Asian decorative paints business to Nippon Paint Holdings for $1.35 billion, completing its review of the Asian decorative paints portfolio. The transaction follows an earlier report by the Financial Times that AkzoNobel was nearing a deal worth more than $1 billion.
Deal Covers Seven Markets
The sale includes AkzoNobel's decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. The company expects to receive approximately $1 billion in net cash proceeds after taxes and payments to minority partners. The Indonesia transaction is expected to close separately in late 2026, while the remaining transactions are expected to be completed around mid-2027.
AkzoNobel Continues Portfolio Restructuring
The divestment is part of AkzoNobel's strategy to focus on businesses and markets where it can achieve stronger scale and competitive positioning. The company had previously sold its decorative paints operations in India for $1.6 billion and its Pakistan operations for €50 million.
AkzoNobel CEO Greg Poux-Guillaume said the completion of the Asian portfolio review supports the company's strategy of concentrating on areas where it can strengthen its position.
The latest transaction also comes as AkzoNobel prepares to complete its planned merger with US-based coatings company Axalta Coating Systems. The merger was announced in November 2025, and AkzoNobel said it will now focus on successfully completing the combination.
Nippon Paint's Earlier Interest in AkzoNobel
Nippon Paint had previously made multiple proposals to acquire AkzoNobel's decorative paints business. In July, AkzoNobel said those proposals valued the business at around €7.5 billion ($8.44 billion) but maintained that the offers significantly undervalued the division.
Nippon Paint and US-based The Sherwin-Williams Company had also previously pursued a much larger takeover of AkzoNobel. That €12.5 billion proposal was withdrawn in June.
The Southeast Asian acquisition gives Nippon Paint a significant expansion in the region's decorative paints market, while allowing AkzoNobel to streamline its portfolio and concentrate on its remaining operations and planned Axalta merger.
Conclusion
AkzoNobel’s $1.35 billion sale of its Southeast Asian decorative paints business to Nippon Paint marks a major shift in the regional paints market. The deal will help Nippon Paint expand its presence across seven markets, while AkzoNobel gains around $1 billion in net cash to support its portfolio strategy and planned Axalta merger.
FAQs
1. What is AkzoNobel selling to Nippon Paint?
AkzoNobel is selling its Southeast Asian decorative paints business to Nippon Paint Holdings for $1.35 billion.
2. Which countries are included in the deal?
The transaction covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia.
3. How much net cash will AkzoNobel receive?
AkzoNobel expects to receive around $1 billion in net cash proceeds after taxes and payments to minority partners.
4. When is the transaction expected to close?
The Indonesia transaction is expected to close in late 2026, while the remaining transactions are expected to be completed around mid-2027.
5. Why is AkzoNobel selling its Southeast Asian paints business?
The divestment is part of AkzoNobel's portfolio strategy to focus on businesses and markets where it can strengthen its competitive position and achieve better scale.
6. What brands does AkzoNobel operate in the paints industry?
AkzoNobel is known for brands including Dulux, which has a significant presence across global decorative paints markets.
