AkzoNobel has entered into binding agreements to sell its Decorative Paints business in Southeast Asia to Nippon Paint for an enterprise value of approximately $1.35 billion (€1.20 billion). The divestment forms part of AkzoNobel’s previously announced strategy to rebalance its portfolio and strengthen its focus on businesses where it can achieve leadership positions and differentiated scale.
Seven Countries Included in the Deal
The agreements cover AkzoNobel’s Decorative Paints operations across seven countries: Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. However, AkzoNobel will retain full ownership of its coatings businesses and global business services organisation.
$1 Billion in Expected Net Proceeds
The transactions are based on an enterprise value of approximately $1.35 billion, equivalent to an EV/FY2025 EBITDA multiple of 21 times. After accounting for taxes and minority partners, AkzoNobel expects to receive approximately $1 billion (€0.9 billion) in net cash proceeds. Following the earlier sale of its Decorative Paints businesses in India and Pakistan, the latest transactions will complete AkzoNobel’s review of its Decorative Paints portfolio in Asia. The company will now focus on completing its planned merger with Axalta.
AkzoNobel Focuses on Portfolio Strategy
Greg Poux-Guillaume, CEO, AkzoNobel, said, “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.” He expressed confidence that Nippon Paint would build on this foundation by combining the acquired businesses with its existing operations in the region.
Nippon Paint to Build on Existing Businesses
Wee Siew Kim, Director, Representative Executive Officer & Co-President, Nippon Paint, said the company looks forward to welcoming the businesses and their teams. Nippon Paint plans to build on the strong foundations established by AkzoNobel while continuing to deliver quality, experience and local market expertise to customers and partners.
Transactions Expected to Close by 2027
The proposed transactions remain subject to customary closing conditions, including regulatory approvals. The Indonesia transaction is expected to close separately in late 2026, while the remaining transactions are expected to be completed by mid-2027. As per the press release, once completed, the divestments will mark a significant step in AkzoNobel’s portfolio transformation and further strengthen Nippon Paint’s presence across key Southeast Asian decorative paints markets.
