AkzoNobel nears sale of south-east Asian paints unit to Nippon Paint - report

AkzoNobel is reportedly nearing a deal to sell its decorative paints business in Southeast Asia to Japanese paint maker Nippon Paint for over $1 billion, according to a report by the Financial Times. The transaction, expected to be finalized by Monday, would see the sale of operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia.

This move aligns with AkzoNobel's chief executive Grégoire Poux-Guillaume's strategy to divest peripheral markets where the company is not a market leader. The deal does not impact the ongoing merger discussions between AkzoNobel and U.S. paint manufacturer Axalta, which would create a New York-listed group with an enterprise value of approximately $25 billion.

For Nippon Paint, this acquisition would be a smaller deal after two previous failed attempts to expand its presence in AkzoNobel's decorative paints business. Nippon had previously offered €7.5 billion for the entire business in July and proposed a €13 billion takeover in May, both of which were unsuccessful. Nippon remains interested in acquiring AkzoNobel's decorative paints business, but integrating the Southeast Asian operations could be a lengthy process.

AkzoNobel shareholders already approved the merger with Axalta in August, and the combined entity will operate under a single New York listing with dual headquarters in Amsterdam and Philadelphia, generating about $17 billion in annual revenue. This sale is part of AkzoNobel's broader effort to streamline its portfolio before the merger.

In 2025, AkzoNobel also agreed to sell its Indian business to JSW for around €1.4 billion as part of its efforts to dispose of non-core assets.