Thailand
AkzoNobel Sells Southeast Asia Decorative Paints Business to Nippon Paint for $1.35 Billion
The Dutch multinational AkzoNobel has entered into agreements to transfer its decorative paints operations in Southeast Asia and Australia to Japan's Nippon Paint Holdings.
AkzoNobel has officially signed binding agreements to divest its Decorative Paints business across Southeast Asia and Australia to Nippon Paint Holdings Co. for a total enterprise value of approximately $1.35 billion (€1.20 billion). This strategic move is expected to significantly enhance Nippon Paint's existing operations in the region.
The agreements encompass AkzoNobel’s Decorative Paints businesses in several countries, including Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. AkzoNobel will retain full ownership of its Coatings activities and Global Business Services organization, ensuring that its core operations remain intact.
Nippon Paint describes the acquisition as a strategic “bolt-on” transaction that will broaden its customer base and enhance its capabilities in research and development (R&D). The deal will include three production sites and an R&D center located in Malaysia, which are crucial for supporting both retail and project customers.
“Nippon Paint describes the acquisitions as strategic transactions that will expand its customer reach while adding established brands and manufacturing assets.”Nippon Paint Holdings
Specifically, Nippon Paint Singapore Company Pte. Ltd. will acquire shares in AkzoNobel’s subsidiaries in Vietnam and Singapore, while Nippon Paint (Malaysia) Sdn Bhd will take over the Malaysian subsidiary. The Indonesian operations will be acquired by Nippon Paint (H.K.) Company Limited, which will purchase interests from both AkzoNobel and its local partner. In Thailand, the operations will be transferred to Nippon Paint Decorative Coatings (Thailand) Co., Ltd., while the businesses in Australia and Papua New Guinea will be handed over to DuluxGroup Limited.
The acquisition of the Indonesian business is structured as a separate transaction and is expected to close in late 2026, while the remaining transactions are anticipated to be completed by mid-2027, pending regulatory approvals and customary closing conditions.
Financially, the operations being sold generated revenue of $299 million in 2024 and $291 million in 2025, with EBITDA margins of 23% and 22%, respectively, according to Nippon Paint's disclosures. This acquisition is expected to further solidify Nippon Paint's position in the competitive decorative paints market.