AkzoNobel to sell its Southeast Asian Decorative Paints business to Nippon Paint for $1.35 billion

3 days ago

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AkzoNobel Sells Decorative Paints Business in Southeast Asia to Nippon Paint

In a strategic move to enhance its leadership positions, AkzoNobel has finalised binding agreements to sell its Decorative Paints business in Southeast Asia to Nippon Paint. This transaction covers operations in seven countries: Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. AkzoNobel will maintain full ownership of its Coatings activities and Global Business Services organisation.

The deal is valued at approximately $1.35 billion (€1.20 billion), with net cash proceeds expected to be around $1 billion (€0.9 billion) after taxes and minority partners. This divestment follows the company's previous sales of its Decorative Paints businesses in India and Pakistan, marking the conclusion of AkzoNobel’s portfolio review in Asia. The company will now shift its focus towards completing its merger with Axalta.

“The successful completion of our Asia portfolio review is part of an ongoing strategy to focus our portfolio on areas where we can achieve differentiating scale and strengthen our position,” stated AkzoNobel CEO, Greg Poux-Guillaume. He expressed gratitude to the team in Asia for their contributions in establishing strong brands and products, and expressed confidence that Nippon Paint will continue to build on this momentum.

Wee Siew Kim, Director, Representative Executive Officer & Co-President at Nippon Paint, remarked, “We are excited to welcome these businesses and talented teams to our Group, with our shared ambition to create lasting value for our customers and partners. We look forward to building on the strong foundations established by AkzoNobel, while continuing to deliver the quality, experience and local expertise that customers have come to value.”

The transactions are subject to customary closing conditions, including regulatory approvals, with completion anticipated in mid-2027, except for the sale of the Indonesia business, which is expected to finalise separately in late 2026.

Source: AkzoNobel