AkzoNobel to sell Southeast Asia decorative paints unit to Nippon Paint for $1.35 billion

AkzoNobel has finalized an agreement to sell its decorative paints division in Southeast Asia and Australia to Nippon Paint Holdings for approximately $1.35 billion. The deal marks the conclusion of AkzoNobel’s strategic review of its Asian decorative paints portfolio, following previous divestments in India and Pakistan.

The transaction covers operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. The acquisition will be executed through various subsidiary transfers and share acquisitions. The Indonesian unit is expected to finalize separately by late 2026, while the remaining transactions are projected to close around mid-2027.

Nippon Paint intends to fund the purchase using cash and bank borrowings. The acquired businesses reported consolidated revenue of approximately $291 million and an EBITDA of $65 million for the 2025 fiscal year. This acquisition follows previous unsuccessful attempts by Nippon Paint to acquire AkzoNobel’s entire decorative paints business.

AkzoNobel will retain its coatings activities and global business services. The company is now shifting its focus toward completing its merger with the US-based coatings manufacturer Axalta.