Dutch paints maker AkzoNobel said on Monday it has agreed to sell its Southeast Asian decorative paints business to Japan's Nippon Paint for $1.35 billion, completing a review of its Asian decorative paints portfolio.
The sale covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. AkzoNobel said it expects net cash proceeds of about $1 billion after tax and payments to minority partners.
A portfolio reshaping
The Dulux paintmaker had already divested its decorative paints operations in India and Pakistan, for $1.6 billion and 50 million euros respectively. With the Southeast Asia deal, its Asian decorative paints portfolio review is complete.
"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," AkzoNobel chief executive Greg Poux-Guillaume said in a statement.
The Indonesia transaction is expected to close separately in late 2026, while the remaining transactions are expected to close around mid-2027. AkzoNobel said it will now focus on the successful closing of its merger with US coatings maker Axalta, announced in November 2025.
A longer courtship
The deal follows months of maneuvering. Nippon Paint submitted multiple proposals to acquire AkzoNobel's decorative paints business in July, valuing it at about €7.5 billion. That came after the withdrawal in June of a €12.5 billion bid for the entire company that Nippon Paint had pursued jointly with US-based paintmaker Sherwin-Williams.
The Financial Times, which first reported the Southeast Asia deal, said Nippon remains interested in a larger deal for the decorative paint business, although integrating the Southeast Asia operations could occupy the company for some time and AkzoNobel has no plans to sell further assets.
Sources:
- The Straits Times (Reuters): AkzoNobel to sell South-east Asia paints business to Nippon Paint for US$1.35 billion
The sale covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. AkzoNobel said it expects net cash proceeds of about $1 billion after tax and payments to minority partners.
A portfolio reshaping
The Dulux paintmaker had already divested its decorative paints operations in India and Pakistan, for $1.6 billion and 50 million euros respectively. With the Southeast Asia deal, its Asian decorative paints portfolio review is complete.
"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," AkzoNobel chief executive Greg Poux-Guillaume said in a statement.
The Indonesia transaction is expected to close separately in late 2026, while the remaining transactions are expected to close around mid-2027. AkzoNobel said it will now focus on the successful closing of its merger with US coatings maker Axalta, announced in November 2025.
A longer courtship
The deal follows months of maneuvering. Nippon Paint submitted multiple proposals to acquire AkzoNobel's decorative paints business in July, valuing it at about €7.5 billion. That came after the withdrawal in June of a €12.5 billion bid for the entire company that Nippon Paint had pursued jointly with US-based paintmaker Sherwin-Williams.
The Financial Times, which first reported the Southeast Asia deal, said Nippon remains interested in a larger deal for the decorative paint business, although integrating the Southeast Asia operations could occupy the company for some time and AkzoNobel has no plans to sell further assets.
Sources:
- The Straits Times (Reuters): AkzoNobel to sell South-east Asia paints business to Nippon Paint for US$1.35 billion
