AkzoNobel agrees to sell Deco Paints South East Asia for $1.35 billion

AkzoNobel reported Q3 2026 organic sales growth of 2% on pricing, with revenue flat at €2,538 million and adjusted EBITDA up €15 million to €388 million, lifting the adjusted margin to 15.3%. The company signed binding agreements to sell its Deco Paints South East Asia business for $1.35 billion, equal to 21 times FY25 EBITDA. Full-year 2026 adjusted EBITDA is guided to about €1.47 billion, and the Axalta merger closing is expected in early 2027.

Key facts

Market context

Decorative paints are water-based or solvent-based coatings sold for walls, ceilings, trim and other buildings surfaces, and their demand tracks residential construction, renovation activity and household spending. Coatings makers rely on raw materials such as titanium dioxide pigment, resins, binders, solvents and additives, so pricing moves in these inputs feed directly into margins. Companies in this segment typically defend profit through pricing actions and product mix, which is why the organic growth tied to pricing in this quarter matters for investors. A divestment of a regional decorative paints business changes local supply and competitive dynamics, since buyers and remaining rivals may gain share, distribution networks and brand presence in fast-growing Asian markets. Large mergers among coatings suppliers can also shift purchasing leverage with raw material vendors and influence how contract customers source products across regions.

Source: official release on akzonobel.com. Summary and context written by Market Krystal.