AkzoNobel to sell South East Asia decorative paints unit to Nippon Paint

AkzoNobel has entered into binding agreements to sell its Decorative Paints business in seven South East Asian and Pacific markets to Nippon Paint, at a total enterprise value of about $1.35 billion (€1.20 billion) and an EV/FY25 EBITDA multiple of 21x. Net cash proceeds after taxes and minority partners are expected to be about $1 billion (€0.9 billion). The deal covers Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia, with completion expected in mid-2027 and the Indonesia sale expected in late 2026.

Key facts

Market context

Decorative paints are coating products used to protect and colour walls, ceilings, trim and other surfaces in homes, offices and commercial buildings. Demand is driven mainly by residential construction, renovation and repainting cycles, as well as property activity and household incomes. In South East Asia and the Pacific, growing urbanisation and rising middle-class spending have made the region an attractive market for paint producers. Deals that transfer a multi-country decorative portfolio can reshape regional competition, since the buyer gains established brands, distribution networks and local production scale, while the seller exits a segment. Consolidation of this kind often affects pricing discipline, channel relationships with retailers and contractors, and the pace at which rivals invest in capacity and product innovation. Transactions are typically staged across markets, with some completions occurring at different times depending on local regulatory approvals.

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