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AkzoNobel has entered into binding agreements to sell its Decorative Paints business in Southeast Asia to Nippon Paint, the Dutch company said in a statement issued on October 5, 2026. The transaction encompasses operations across Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia while AkzoNobel retains full ownership of its Coatings activities and Global Business Services organization in the region. The agreements follow earlier divestments of the company’s decorative paints units in India and Pakistan, which had already narrowed its Asian exposure.
The deal values the business at an enterprise value of approximately $1.35 billion, equivalent to €1.20 billion and implying an EV/FY25 EBITDA multiple of 21 times. AkzoNobel expects net cash proceeds of about $1 billion after taxes and payments to minority partners. The Southeast Asia unit produced $291 million in revenue and $65 million in EBITDA for 2025, according to a presentation by Nippon Paint that detailed the acquired assets.
Completion of the transactions is anticipated in mid-2027 for most of the businesses, with the Indonesian portion set to close separately in late 2026. All elements remain subject to customary conditions that include regulatory approvals across the involved jurisdictions. AkzoNobel will now direct its attention toward finalizing its proposed merger with U.S. coatings producer Axalta, which was unveiled in November 2025.
Nippon Paint, which had previously submitted proposals for a broader acquisition of AkzoNobel’s decorative paints portfolio valued at around €7.5 billion, described the regional purchase as accretive to earnings upon closing. The Japanese company plans to fund the acquisition through existing cash reserves and bank loans without issuing new shares. It intends to continue operating the acquired businesses under AkzoNobel’s Dulux global brand while integrating them into its existing Asia-Pacific network.
The sale concludes AkzoNobel’s multi-year strategic review of its decorative paints holdings in Asia, a process that has progressively concentrated the company on areas where it holds stronger competitive positions. Industry reports indicate that Nippon Paint’s multiple bids for larger portions of the portfolio had evolved from an initial joint approach with Sherwin-Williams aimed at the entire AkzoNobel group. This latest transaction strengthens Nippon Paint’s market presence across key Southeast Asian economies where decorative paints demand continues to expand.
Baker McKenzie advised AkzoNobel on the $1.35 billion carve-out and proposed sale of its Decorative Paints Southeast Asia business to Nippon Paint, according to a statement from the law firm. The firm’s role centered on guiding the complex separation of the business units and negotiation of the sale agreements. Legal and financial advisors on both sides helped structure the phased closings to address regulatory requirements in multiple jurisdictions.
