TOKYO — Nippon Paint Holdings has agreed to acquire AkzoNobel’s decorative paints businesses across Southeast Asia, Australia and Papua New Guinea for $1.35 billion, securing a major regional expansion after larger takeover attempts involving the Dutch coatings group failed earlier this year.
The deal covers operations in Vietnam, Singapore, Malaysia, Indonesia, Thailand, Australia and Papua New Guinea, giving Nippon Paint access to established brands, distribution networks, manufacturing capabilities and supply systems across seven Asia-Pacific markets.
How the $1.35 billion deal is structured
The transaction will be completed through several Nippon Paint subsidiaries rather than a single acquisition.
Nippon Paint Singapore will acquire AkzoNobel’s decorative paints businesses in Vietnam and Singapore, while Nippon Paint Malaysia will take over the Malaysian operation.
In Indonesia, Nippon Paint (H.K.) will acquire 100% of AkzoNobel’s joint venture from AkzoNobel and its partner. The Thai business will transfer to Nippon Paint Decorative Coatings Thailand.
AkzoNobel’s operations in Australia and Papua New Guinea will move to DuluxGroup, which has been owned by Nippon Paint since 2019.
The Thailand, Australia and Papua New Guinea transfers include assets and liabilities such as sales receivables and product inventory.
Indonesia will close before the rest
The Indonesian acquisition is expected to close separately in late 2026. The remaining transactions are targeted for completion around mid-2027, subject to customary closing conditions and regulatory approvals.
That means customers, suppliers and employees should expect a phased ownership transition rather than an immediate change across all markets.
Target businesses generated $291 million in 2025 revenue
The operations being acquired generated combined revenue of approximately $299 million in 2024 and $291 million in 2025.
EBITDA was about $69 million in 2024 and $65 million in 2025, while EBITDA margins stood at roughly 23% and 22%, respectively.
Nippon Paint says the businesses already have strong brand recognition and established distribution and supply networks. The company expects to create further efficiencies by combining procurement, manufacturing, logistics and sales operations across the group.
Nippon Paint will use cash and bank borrowing
Nippon Paint plans to finance the $1.35 billion purchase through cash on hand and bank borrowings.
The company has also said it does not plan to issue new shares, avoiding direct dilution for existing shareholders.
Investors will instead be watching financing costs, integration expenses and whether the acquired businesses can deliver the expected cost savings and earnings contribution.
Other recent corporate deals have similarly focused on buying established operations rather than building new networks from scratch, as seen in major cross-border asset transactions covered by Swikblog.
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The failed AkzoNobel bids make this deal more significant
The agreement comes after Nippon Paint made much larger approaches for AkzoNobel earlier in 2026.
Nippon Paint and Sherwin-Williams previously proposed a cash takeover valued at €73 per AkzoNobel share. That approach was rejected.
Nippon Paint later pursued AkzoNobel’s decorative paints division separately, including a proposal valuing the business at around €7.5 billion. AkzoNobel said the offer significantly undervalued the operation.
The company detailed those proposals in an official AkzoNobel statement.
The new $1.35 billion agreement is far narrower than those earlier bids, but it gives Nippon Paint something its previous approaches did not: an agreed path to ownership of selected AkzoNobel businesses in markets that fit closely with its existing Asia-Pacific operations.
Nippon Paint Expands Its Asia-Pacific Footprint
For Nippon Paint, the acquisition strengthens an already large regional footprint and deepens its connection with DuluxGroup in Australia and Papua New Guinea.
For AkzoNobel, the sale forms part of a wider effort to reshape its portfolio and focus capital on businesses where it sees stronger strategic returns.
Swikblog has also tracked similar large-company expansion moves, including major Australian acquisition discussions where scale, distribution and integration are central to the investment case.
The biggest question now is execution: whether Nippon Paint can close the transactions on schedule, integrate operations across seven markets and turn the $1.35 billion acquisition into stronger earnings and regional market share.
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