TOKYO (dpa-AFX) - Akzo Nobel (AKZA.AS) announced that it has signed binding agreements to divest its Decorative Paints business in Southeast Asia to Nippon Paint in a transaction valued at approximately $1.35 billion or 1.20 billion euros, as the company sharpens its strategic focus ahead of its planned merger with Axalta.
The sale covers AkzoNobel's Decorative Paints operations in seven markets: Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia. The company will retain full ownership of its Coatings business and Global Business Services organization.
AkzoNobel expects to receive net cash proceeds of around $1 billion or 0.9 billion euros after taxes and minority partner interests. The divestment follows the company's earlier sales of its Decorative Paints businesses in India and Pakistan and marks the completion of its portfolio review of Decorative Paints operations in Asia.
With the portfolio restructuring concluded, AkzoNobel said it will focus on completing its proposed merger with Axalta, a transaction aimed at strengthening its position in the global coatings industry.
The agreements remain subject to customary closing conditions, including regulatory approvals. Most of the transactions are expected to close in mid-2027, while the sale of the Indonesian business is anticipated to be completed separately in late 2026.
AKZA.AS closed Friday regular trading at 56.68 euros up 1.24 euros or 2.24%.
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