AkzoNobel has signed binding agreements to sell its Southeast Asian Decorative Paints business to Nippon Paint. The deal includes operations across seven countries: Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. This divestment aligns with AkzoNobel's strategy to rebalance its portfolio toward market leadership positions, while the company retains complete ownership of its Coatings activities and Global Business Services division.

The transactions value the enterprise at approximately $1.35 billion (€1.20 billion), which represents an EV/FY25 EBITDA multiple of 21x. Net cash proceeds are projected to reach roughly $1 billion (€0.9 billion) after accounting for taxes and minority partners. Following the previous sales of its decorative paint businesses in India and Pakistan, these planned divestments conclude AkzoNobel’s comprehensive review of its Asian Decorative Paints portfolio. Moving forward, the company will shift its full focus toward successfully closing its merger with Axalta.

“The successful completion of our Asia portfolio review is part of an ongoing strategy to focus our portfolio on areas where we can achieve differentiating scale and strengthen our position,” says AkzoNobel CEO, Greg Poux-Guillaume.

“We’re grateful to all our colleagues in Asia for helping us establish a series of excellent Decorative Paints businesses with strong brands and products. We trust that Nippon Paint, in combination with their own businesses in those countries, will build on that momentum.”

Wee Siew Kim, Director, Representative Executive Officer & Co-President at Nippon Paint, adds, “We are excited to welcome these businesses and talented teams to our Group, with our shared ambition to create lasting value for our customers and partners. We look forward to building on the strong foundations established by AkzoNobel, while continuing to deliver the quality, experience and local expertise that customers have come to value.”

The transactions are subject to customary closing conditions, including regulatory approvals. Completion is expected in mid-2027, except for the sale of the Indonesia business, which is expected to complete separately in late 2026.