AkzoNobel agrees US$1.35 billion sale of Southeast Asian paints business
Nippon Paint will buy operations across seven markets, with AkzoNobel expecting about US$1 billion in net cash proceeds.
AkzoNobel said on Oct 5 that Nippon Paint had agreed to buy its Southeast Asian decorative paints business for US$1.35 billion (RM5.5 billion). The agreement concludes the Dutch company's review of its decorative paints portfolio in Asia.
Operations covered by the sale are in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. AkzoNobel expects to receive about US$1 billion in net cash after paying taxes and minority partners.
Completion will be staggered: the Indonesian transaction is expected to close in late 2026, separately from the other transactions, which are expected to conclude around mid-2027.
AkzoNobel had previously sold its Indian decorative paints operations for US$1.6 billion and its Pakistani operations for €50 million. Chief executive Greg Poux-Guillaume said the portfolio review formed part of a continuing strategy to concentrate on areas where the company could build scale and strengthen its position.
The company said its attention would now turn to completing its merger with US coatings maker Axalta. Nippon Paint had made multiple acquisition proposals for AkzoNobel's decorative paints business, valuing it at about €7.5 billion, according to AkzoNobel's comments in July.
