Key takeaways:
- AkzoNobel will sell its Southeast Asian decorative paints business for $1.35 billion.
- The deal covers operations across seven Asia-Pacific markets.
- AkzoNobel expects about $1 billion in net cash proceeds after taxes and payments.
AkzoNobel Southeast Asia Paints Business Sale to Nippon Paint is valued at $1.35 billion, completing a review of its Asian portfolio and sharpening its focus on larger-scale operations.
Akzonobel exits seven regional markets
The AkzoNobel Southeast Asia Paints Business Sale covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia, AkzoNobel said Monday.
The Dutch paints maker expects net cash proceeds of about $1 billion after taxes and payments to minority partners. The transactions will be completed in stages, with the Indonesia deal expected to close separately in late 2026 and the remaining deals around mid-2027.
AkzoNobel Chief Executive Greg Poux-Guillaume said the sale is part of the company’s broader effort to concentrate on businesses where it can build scale and strengthen its market position.
“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,” Poux-Guillaume said in a statement.
Nippon paint expands regional position
The AkzoNobel Southeast Asia Paints Business Sale gives Nippon Paint a larger operating footprint across several major Asia-Pacific markets.
Nippon Paint had submitted multiple proposals to acquire AkzoNobel’s decorative paints business, the Dutch company said in July. Those proposals valued the broader decorative paints business at about 7.5 billion euros, or $8.44 billion.
The Southeast Asia transaction follows a larger takeover effort that failed earlier this year. Nippon Paint and U.S.-based Sherwin-Williams withdrew a 12.5 billion-euro bid for the entire AkzoNobel company in June.
The Financial Times, which first reported the Southeast Asia transaction, said Nippon Paint remains interested in a larger deal for AkzoNobel’s decorative paints business. However, integrating the Southeast Asia operations could take time, while AkzoNobel has no plans to sell additional assets from the business, according to the report.
Akzonobel shifts focus to axalta deal
The sale is the latest step in AkzoNobel’s restructuring of its decorative paints operations in Asia. The company previously sold its decorative paints operations in India and Pakistan for $1.6 billion and 50 million euros, respectively.
AkzoNobel said it will now focus on completing its planned merger with U.S. coatings maker Axalta. The companies announced the deal in November 2025.
The planned combination is part of AkzoNobel’s effort to strengthen its position in the global coatings industry as it reshapes its portfolio and reduces its exposure to selected decorative paints markets.
The Southeast Asia transaction also gives Nippon Paint a larger operating footprint in markets where decorative paints remain an important part of the construction and consumer products sectors.
