AkzoNobel to sell unit to Nippon Paint for over $1 billion, FT reports

Dulux, the paint maker for AkzoNobel, is reportedly in talks to sell its Southeast Asian decorative paints business to Nippon Paint for more than $1 billion, according to a report in the Financial Times. The Dutch company may finalize the deal as early as Monday, the newspaper claimed. The transaction would encompass decorative paint operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia.

The authenticity of the FT report has yet to be confirmed by Reuters, and AkzoNobel and Nippon Paint have not yet commented on the matter. In July, Nippon Paint had submitted multiple proposals to acquire AkzoNobel’s decorative paints business, valuing it at approximately €7.5 billion ($8.44 billion). This came after a €12.5 billion bid for the entire company, which Nippon Paint had pursued alongside US-based paintmaker Sherwin-Williams in June but was later withdrawn.

The FT report further stated that Nippon Paint remains interested in a larger deal for the decorative paint business, but integration of the Southeast Asia operations could take time, and AkzoNobel does not currently plan to sell additional assets from the business.