Nippon Paint (TYO:4612) has agreed to acquire AkzoNobel NV's decorative paints operations in Southeast Asia, Australia and Papua New Guinea for $1.35 billion.
The deal follows two failed attempts this year by Nippon Paint to buy a unit of the Dutch company.
Nippon Paint said it will fund the purchases through bank borrowings and cash on hand and has no plans to issue new shares, according to a press release on Monday.
The agreements cover several structures. Nippon Paint Singapore will buy AkzoNobel's decorative paints subsidiaries in Vietnam and Singapore, and Nippon Paint (Malaysia) will buy the Malaysian unit.
Nippon Paint (H.K.) Co. will take 100% of AkzoNobel's Indonesian joint venture from AkzoNobel and its partner. AkzoNobel's Thai business will transfer to Nippon Paint Decorative Coatings (Thailand), and its Australian and Papua New Guinea operations will move to DuluxGroup.
The Thai, Australian and Papua New Guinea transfers cover sales receivables, product inventory and other assets and liabilities.
The Indonesian purchase is a separate transaction and is expected to close in late 2026. Full closing for the other deals is estimated for mid-2027.
The target units booked combined revenues of $299 million in 2024 and $291 million in revenues in 2025. EBITDA was $69 million in 2024 and $65 million in 2025, while EBITDA margins were 23% and 22%, respectively.
Nippon Paint said the target units have established distribution networks, brand recognition and supply systems. "By facilitating collaboration across the Group's procurement, manufacturing, logistics, and sales functions through this transaction, the Company expects to enhance operational efficiency and generate synergies," said Nippon Paint.
The deal follows earlier attempts by Nippon Paint to buy the business from AkzoNobel. In May, AkzoNobel said it rejected a joint 73-euro per-share cash offer from Nippon Paint and Sherwin-Williams Co. to buy its entire decorative paint business. According to the Financial Times, that offer was worth 13 billion euros.
In July, AkzoNobel confirmed receiving multiple conditional and non-binding proposals from Nippon Paint for the same unit. However, the Dutch firm said the 7.5 billion-euro proposal undervalues the business.
