Tokyo/Amsterdam: Japan’s Nippon Paint Holdings has agreed to acquire AkzoNobel’s Southeast Asian decorative paints business for approximately $1.35 billion, creating a major expansion opportunity for the Japanese paintmaker across several important Asian markets.

The transaction covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. AkzoNobel expects to receive approximately $1 billion in net cash proceeds after taxes and payments to minority partners.

Major Expansion for Nippon Paint

The acquisition will significantly strengthen Nippon Paint’s presence across Southeast Asia and Australia.

The businesses being acquired generated approximately $291 million in revenue and $65 million in EBITDA during 2025, according to information provided by Nippon Paint. The company expects the transaction to become profit-accretive after completion.

Nippon Paint plans to finance the purchase through a combination of cash and bank borrowing rather than issuing new shares.

AkzoNobel Reshapes Its Asian Portfolio

For AkzoNobel, the transaction is part of a broader strategy to concentrate its operations on markets where it can achieve stronger scale and competitive positions.

The Dutch company, best known globally for brands including Dulux, has already divested its decorative paints operations in India and Pakistan. The latest transaction completes its review of the Asian decorative paints portfolio.

AkzoNobel will retain its coatings activities and global business services operations in the affected markets.

Indonesia Deal to Close Separately

The transaction will not close simultaneously across all markets.

The Indonesia business is expected to be transferred separately in late 2026, while the remaining transactions are expected to be completed around mid-2027, subject to regulatory approvals and other customary closing conditions.

This phased approach will allow the companies to complete the necessary regulatory and operational processes in individual markets.

Nippon Paint Sees Integration Opportunities

Nippon Paint expects the acquired businesses to benefit from its existing regional operations.

Potential efficiencies include joint procurement, manufacturing and logistics, cross-selling opportunities and lower administrative costs. The company has also highlighted the acquired businesses’ established distribution networks, brands and manufacturing capabilities as important advantages.

The combination could allow Nippon Paint to strengthen its supply chain and increase its reach among residential and commercial customers across the region.

A Partial Victory for Nippon Paint

The deal also follows several unsuccessful attempts by Nippon Paint to acquire a much larger part of AkzoNobel.

Nippon Paint previously made proposals to acquire AkzoNobel’s entire decorative paints business, with one proposal valuing the division at around €7.5 billion. Nippon Paint and Sherwin-Williams had also pursued a much larger transaction involving the entire AkzoNobel company, but that effort did not succeed.

The latest agreement therefore gives Nippon Paint a substantial regional expansion even though its earlier broader ambitions were unsuccessful.

AkzoNobel Focuses on Axalta Combination

After completing the Asian portfolio review, AkzoNobel is expected to concentrate on its planned combination with U.S.-based coatings company Axalta.

The merger is intended to create a major global paints and coatings group with an enterprise value of around $25 billion.

The Southeast Asian asset sale is separate from the regulatory process surrounding that larger combination.

Southeast Asia Remains a Strategic Market

The transaction highlights the growing importance of Southeast Asia’s consumer and construction markets for global paint manufacturers.

Rapid urbanisation, infrastructure development, housing construction and rising consumer demand are creating opportunities for decorative coatings companies. Established distribution networks and local manufacturing capabilities can therefore provide significant competitive advantages.

For Nippon Paint, acquiring an existing regional platform could be faster and more efficient than building comparable operations from the ground up.

The deal also demonstrates how major global companies are reshaping their portfolios around markets where they believe they can achieve stronger growth and scale.

If completed as planned, the acquisition will strengthen Nippon Paint’s position across multiple Asia-Pacific markets while giving AkzoNobel additional financial resources to focus on its remaining strategic priorities.