AkzoNobel has concluded agreements to sell its Southeast Asian paints business to Nippon Paint for an enterprise value of $1.35 billion
AkzoNobel has concluded binding agreements to sell its decorative paints business in Southeast Asia to Nippon Paint on the basis of an enterprise value of approximately $1.35 billion ($1.20 billion euros). The Dutch group indicated that this transaction concludes the review of its decorative paints portfolio in Asia.
Seven countries included in the scope sold to Nippon Paint
The agreements cover AkzoNobel's decorative paints business in seven countries: Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. The group retains full ownership of its coatings activities and its Global Business Services organization.
The enterprise value retained corresponds to a multiple of 21 times the EBITDA for the 2025 financial year of the divested activities. After taxes and minority partners' share, AkzoNobel expects a net cash proceeds of approximately $1 billion (€0.9 billion).
The company published this announcement under Article 17, paragraph 1, of the European Market Abuse Regulation (596/2014).
A step in portfolio reorganization ahead of the merger with Axalta
The divestiture is part of the portfolio rebalancing previously announced by AkzoNobel, focused on activities where it holds leading positions. The group had already sold its decorative paints businesses in India and Pakistan.
AkzoNobel will now fully focus on completing its merger with Axalta. "Completing the review of our portfolio in Asia is part of an ongoing strategy to concentrate our portfolio on areas where we can achieve differentiating scale and strengthen our position," said Greg Poux-Guillaume, Chief Executive Officer of AkzoNobel.
For Nippon Paint, Wee Siew Kim, Director, Executive Representative and Co-President, indicated that the group intends to build on the foundations established by AkzoNobel in these countries.
Expected completion mid-2027, end of 2026 for Indonesia
The transactions remain subject to customary closing conditions, including obtaining regulatory approvals.
Completion is expected in mid-2027, with the exception of the divestiture of the Indonesian business, which is expected to be completed separately at the end of 2026.
