Nippon Paint to buy Akzo’s Southeast Asia unit for $1.35 billion
Japan's No. 1 paint company had previously sought to buy Akzo's entire residential and commercial paints unit for $8.4 billion.
Nippon Paint has agreed to acquire Akzo Nobel's decorative paints business in Southeast Asia for $1.35 billion, solidifying its presence in the region. The Japanese paint company had previously sought to purchase the entire Akzo decorative paints unit, but the offer was rejected. The deal, spanning seven countries, includes Vietnam, Indonesia, Malaysia, Thailand, Singapore, and Australia.
Nippon Paint anticipates the acquisition to be accretive to profits by mid-2027. The purchase price reflects a higher valuation multiple compared to Nippon Paint's earlier, broader offer. Akzo Nobel will retain control over its coatings activities and global business services. The transaction is expected to generate significant annual savings through joint procurement, production, logistics, cross-selling, and reduced overhead. Nippon Paint will finance the acquisition using bank loans and cash reserves.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
