AkzoNobel signs $1.35 billion regional paints sale to Nippon Paint
The seven-country deal includes five Southeast Asian markets, with Indonesia expected to close separately in late 2026.
AkzoNobel has signed binding agreements to sell its Decorative Paints businesses across seven countries to Nippon Paint for an enterprise value of approximately $1.35 billion. Announced on 5 October, the proposed sale covers five Southeast Asian markets and gives regional suppliers and distributors two separate expected completion windows to track.
The businesses are in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. AkzoNobel will retain full ownership of its Coatings activities and Global Business Services organisation, making the business boundary important for partners assessing whether their commercial relationships fall within the proposed transfer.
The agreed enterprise value is equivalent to approximately €1.20 billion and represents 21 times the businesses’ financial-year 2025 earnings before interest, tax, depreciation and amortisation. AkzoNobel expects net cash proceeds of about $1 billion, or €0.9 billion, after taxes and payments to minority partners. Enterprise value and expected net proceeds therefore describe different amounts.
Completion is expected in mid-2027 for most of the transactions. The Indonesia business is expected to complete separately in late 2026. All transactions remain subject to customary closing conditions, including regulatory approvals; the signing announcement does not establish that ownership has already transferred.
The planned divestments conclude AkzoNobel’s Decorative Paints portfolio review in Asia, following its sales of decorative-paints businesses in India and Pakistan. The company said it would now focus on completing its merger with Axalta. Chief executive Greg Poux-Guillaume described the portfolio review as part of a strategy to concentrate on businesses where AkzoNobel can build differentiating scale.
Nippon Paint said it intended to build on the acquired businesses’ established brands, products and local expertise alongside its existing operations. Its statement addressed customers and partners but did not set out changes to individual supply agreements, distribution arrangements or product pricing.
For commercial counterparties, the immediate task is to identify the relevant business and country, then follow the applicable closing process. Indonesia’s separate timetable makes a single regional transition date an unreliable planning assumption. The announcement provides a transaction perimeter and expected timing, while detailed operating and contractual arrangements remain matters for subsequent confirmation.
Source: AkzoNobel announcement.
