Japan’s Nippon Paint Holdings has finalized a $1.35 billion acquisition of Akzo Nobel’s Southeast Asian decorative paints business, a key step in the Dutch firm’s Asia portfolio review. The deal, covering seven countries, is set to close by mid-2027.
Nippon Paint Holdings, Japan’s largest paint company, has agreed to acquire Akzo Nobel’s decorative paints operations in Southeast Asia and Australia for $1.35 billion, finalizing a strategic review of the Dutch firm’s regional assets. The transaction, which includes businesses in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia, is expected to close fully by mid-2027, with the Indonesian unit settling separately by late 2026 (Japan Times).
Financial Details and Strategic Motives
The acquisition follows multiple failed bids by Nippon Paint to buy Akzo Nobel’s entire decorative paints business. In July, the Dutch firm rejected a €7.5 billion offer, citing undervaluation, while earlier attempts included a €12.5 billion joint bid with Sherwin-Williams that collapsed (MLex). The current deal gives Nippon Paint a foothold in key markets like Vietnam and Indonesia (Channelnewsasia).
Nippon Paint will fund the purchase through bank borrowings and cash, avoiding share issuance. The transaction involves specific subsidiary transfers: Nippon Paint Singapore will acquire Akzo Nobel’s Vietnamese and Singaporean units, Nippon Paint (Malaysia) will take the Malaysian operation, and Nippon Paint (H.K.) Co. will assume 100% of Akzo Nobel’s Indonesian joint venture. Akzo Nobel’s Thai business will transfer to Nippon Paint Decorative Coatings (Thailand), while Australian and Papua New Guinea operations will move to DuluxGroup (Yahoo Finance Singapore).
Revenue and Market Position
The acquired units generated $291 million in 2025 revenue and $65 million in EBITDA, down from $299 million and $69 million in 2024, according to Nippon Paint’s internal data. The company expects integration benefits to offset the higher valuation, with annual savings projected to stem from joint procurement, production, and logistics
(Japan Times). Akzo Nobel’s 2025 EBITDA multiple of 21 times contrasts with Nippon Paint’s 16 times 2026 EBITDA estimate, reflecting the Japanese firm’s confidence in operational synergies (Yahoo Finance Singapore).
Akzo Nobel previously sold its Indian and Pakistani decorative paints operations for $1.6 billion and 50 million euros, respectively, as part of its portfolio restructuring. The Southeast Asia deal follows a prior multibillion-euro approach that collapsed, with Nippon Paint now focusing on a regional carve-out (Mezha). The Indonesian transaction, separate from the other six markets, is expected to close in late 2026, while the remaining deals are scheduled for mid-2027 (Japan Times).
Future Implications and Unanswered Questions
Akzo Nobel, which is merging with Axalta Coating Systems, has no plans to sell further assets from the business, according to its CEO. Nippon Paint, however, remains interested in a larger deal for the decorative paint business, though integration of the Southeast Asia business could occupy the company for some time (MLex). The deal’s success will depend on regulatory approvals and the smooth transfer of assets, including Akzo Nobel’s Indonesian joint venture, which remains a separate transaction (Japan Times).
For Nippon Paint, the acquisition strengthens its presence in Asia’s fastest-growing paint markets, while Akzo Nobel gains liquidity to fund its Axalta merger. The transaction highlights the competitive dynamics in the global coatings industry, where consolidation and regional expansion are driving major players to secure market share (WIMZ).