Nippon Paint agrees to buy AkzoNobel Southeast Asian decorative paints business for $1.35 billion
The Japanese company will take over architectural coatings operations across seven countries including Vietnam and Australia by mid-2027 while retaining the Dulux brand.
Acquisition terms and regional scope
Japan's Nippon Paint Holdings has agreed to acquire the Southeast Asian and Oceanian decorative paints business of Dutch rival AkzoNobel for an enterprise value of $1.35 billion. The transaction covers architectural paint operations across seven countries, including Vietnam, Indonesia, Malaysia, Thailand, Singapore, Australia, and Papua New Guinea. Nippon Paint plans to finance the purchase through a combination of cash on hand and loans from financial institutions. The transaction is projected to be completed in mid-2027, subject to customary closing conditions and approvals. As part of the commercial arrangement, Nippon Paint will retain and continue using AkzoNobel's global Dulux brand name across the acquired regional markets.
Strategic regional expansion for Nippon Paint
The agreement allows Nippon Paint, Japan's largest paint manufacturer, to expand its commercial footprint across the broader Asia-Pacific region. The company already holds the leading market share in architectural paints across Asia, and the addition of AkzoNobel's regional distribution assets is intended to reinforce that market position. Although Nippon Paint secured only the regional division rather than the entire global decorative paints unit it initially sought, the purchase provides immediate scale across key consumer markets in Southeast Asia and Oceania. Integrating operations across the seven countries is expected to occupy Nippon Paint's operational management for an extended period. AkzoNobel has stated that it does not plan to sell any further units from its decorative paints division.
History of rejected takeover bids
The $1.35 billion agreement follows several unsuccessful attempts by Nippon Paint to execute larger transactions with AkzoNobel. In the spring of 2026, Nippon Paint partnered with US manufacturer Sherwin-Williams to launch a joint takeover bid for all of AkzoNobel's shares, with proposals valued between €12.5 billion and €13 billion. After AkzoNobel rejected that joint bid, Nippon Paint returned in July 2026 with an independent proposal valued at €7.5 billion to acquire the entire decorative paints business. AkzoNobel dismissed the alternative offers, noting that they were unacceptable given its binding commitments under a separate corporate merger agreement. The regional disposal also follows AkzoNobel's 2025 sale of its Indian decorative paint business to industrial conglomerate JSW for approximately €1.4 billion.
- AkzoNobel agrees to sell its Indian business to JSW for €1.4 billion
- Nippon Paint submits €7.5 billion proposals for AkzoNobel architectural paints unit
- AkzoNobel shareholders approve merger with Axalta Coating Systems
- Nippon Paint agrees to acquire Southeast Asian unit for $1.35 billion
AkzoNobel's pending Axalta merger
The divestment aligns with an earlier pledge by AkzoNobel chief executive Grégoire Poux-Guillaume to exit peripheral Southeast Asian markets where the company is not a market leader. AkzoNobel had previously flagged plans to dispose of non-core regional assets before finalizing its broader corporate combination. In November, AkzoNobel agreed to a merger with US-based Axalta Coating Systems, creating a combined paints and coatings entity with an enterprise value of approximately $25 billion. The merged entity will generate annual revenues of around $17 billion, positioning it among the largest coatings manufacturers globally. AkzoNobel shareholders voted to approve the Axalta transaction in August. The merged business will maintain a single public listing in New York alongside dual headquarters in Amsterdam and Philadelphia.
