AkzoNobel is continuing to rebalance its portfolio towards its retained Coatings businesses after agreeing to sell its Decorative Paints operations in Southeast Asia to Nippon Paint for approximately $1.35 billion.
The binding agreements cover AkzoNobel’s Decorative Paints businesses in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. The company will retain full ownership of its Coatings activities and Global Business Services organisation.
The transaction forms part of AkzoNobel’s previously announced portfolio-rebalancing strategy, with the company focusing its resources on businesses where it can achieve greater scale and competitive differentiation.
Portfolio reshaping strengthens focus on specialist coatings
The transaction has an enterprise value of approximately $1.35 billion (€1.20 billion), equivalent to an EV/FY25 EBITDA multiple of 21 times. AkzoNobel expects net cash proceeds of approximately $1 billion (€0.9 billion) after taxes and minority interests.
The planned divestment follows AkzoNobel’s earlier sale of its Decorative Paints businesses in India and Pakistan, completing the company’s review of its Decorative Paints portfolio in Asia.
Importantly, the businesses being sold are decorative paints operations, serving consumer and architectural applications. They are separate from AkzoNobel’s retained Coatings activities, which focus on coatings for industrial and other specialised applications.
This distinction is particularly relevant to AkzoNobel’s wider portfolio strategy. Rather than exiting coatings, the company is concentrating its ownership around its retained coatings businesses while reducing exposure to decorative paints in Asia.
AkzoNobel’s coatings portfolio includes solutions used across industrial applications and specialist markets, where coatings can provide functions such as corrosion protection, surface durability, chemical resistance and appearance. These applications serve different customer and industry requirements from decorative paints used primarily for buildings and consumer spaces.
The strategy is also taking place as AkzoNobel works towards the planned completion of its merger with Axalta. The company said it will now focus on successfully closing the transaction.
AkzoNobel CEO Greg Poux-Guillaume said the completion of the Asia portfolio review forms part of the company’s strategy to focus its portfolio on areas where it can achieve differentiating scale and strengthen its position.
Nippon Paint Director, Representative Executive Officer and Co-President Wee Siew Kim said the company intends to build on the businesses and teams acquired from AkzoNobel while maintaining their established customer relationships and local expertise.
The Southeast Asia transactions remain subject to customary closing conditions, including regulatory approvals. Completion is expected in mid-2027, while the Indonesia transaction is expected to close separately in late 2026.
The divestment therefore represents a further step in AkzoNobel’s portfolio transformation: decorative paints operations are being transferred to Nippon Paint, while AkzoNobel retains its broader specialist coatings activities and continues to position itself around those businesses.
