NETHERLANDS; SOUTHEAST ASIA —Dutch chemicals and coatings manufacturer AkzoNobel has executed binding contracts to sell its Decorative Paints operations in South East Asia to Japan-based Nippon Paint. The agreement values the regional business at an enterprise value of 1.35 billion US dollars (1.2 billion euros), representing an EV/FY25 EBITDA multiple of 21x. Net cash proceeds from the sale are projected at approximately 1 billion US dollars (0.9 billion euros) after accounting for taxes and minority interests. Closing is anticipated in mid-2027, with the Indonesian portion expected to settle separately in late 2026 subject to regulatory clearances.
AkzoNobel is a global producer of decorative paints and performance coatings headquartered in the Netherlands. Nippon Paint is a major Japanese paint and coatings manufacturer operating extensive industrial and decorative formulation networks across the Asia-Pacific region.
The asset sale covers AkzoNobel's consumer paint businesses across seven markets, namely Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. AkzoNobel will maintain full ownership of its industrial coatings divisions and its Global Business Services infrastructure in the region. This divestment marks the completion of AkzoNobel's strategic evaluation of its Asian decorative paint portfolio, following previous business sales in India and Pakistan, allowing the company to concentrate resources on its pending merger with Axalta Coating Systems.
This transaction signals continued strategic realignment within the global coatings industry, where multinational producers are consolidating regional market share and sharpening core category focus. For Nippon Paint, acquiring established brand portfolios expands its distribution reach and market leadership across fast-growing South East Asian consumer sectors. For industry analysts and investors, AkzoNobel's portfolio streamlining frees capital and simplifies organizational structure, aiding execution for its broader combination with Axalta.
