AkzoNobel has agreed to sell its Southeast Asian decorative paints business to Nippon Paint for $1.35 billion, marking the completion of its strategic review of its decorative paints portfolio in Asia.
The transaction covers AkzoNobel’s decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. The Dutch coatings manufacturer expects to receive approximately $1 billion in net cash proceeds after taxes and payments to minority partners.
The sale follows AkzoNobel’s earlier divestments of its decorative paints operations in India and Pakistan, which were sold for $1.6 billion and €50 million respectively.
AkzoNobel Chief Executive Greg Poux-Guillaume said completing the Asian portfolio review forms part of the company’s broader strategy to concentrate on areas where it can achieve greater scale and strengthen its competitive position.
The transaction involving Indonesia is expected to close separately in late 2026, while the remaining transactions are anticipated to be completed around mid-2027, subject to the necessary conditions.
Following the announcement, AkzoNobel said its focus will now turn to completing its planned merger with US coatings manufacturer Axalta, a deal announced in November 2025.
The latest transaction follows several approaches from Nippon Paint to acquire AkzoNobel’s decorative paints business. In July, Nippon Paint submitted multiple proposals that valued the business at approximately €7.5 billion.
Nippon Paint’s latest move came after the company and US-based coatings manufacturer Sherwin-Williams withdrew a €12.5 billion proposal to acquire AkzoNobel as a whole in June.
The Financial Times has reported that Nippon Paint continues to have an interest in a larger transaction involving AkzoNobel’s decorative paints business. However, integrating the Southeast Asian operations could take considerable time, while AkzoNobel currently has no plans to sell additional assets from the business.