Dulux paint maker AkzoNobel is nearing a deal to sell its Southeast Asian decorative paints business to Nippon Paint for over $1 billion. The agreement, which could be announced as early as Monday, includes operations in countries like Vietnam, Indonesia, and Malaysia. AkzoNobel does not plan to sell further assets.
AkzoNobel is close to finalizing a deal with Nippon Paint for its Southeast Asian decorative paints business. This potential agreement is expected to surpass $1 billion and may be announced soon. The divestment would involve operations across several countries, including Vietnam, Indonesia, and Malaysia. Nippon Paint has previously shown interest in acquiring the entire decorative paints division of AkzoNobel.
Dulux paint maker AkzoNobel is nearing a deal to sell its Southeast Asian decorative paints business to Nippon Paint for well over $1 billion, the Financial Times reported on Sunday, citing people familiar with the matter.
The Dutch company could reach an agreement as early as Monday, the newspaper said. The divestment would include decorative paint operations in Vietnam, Indonesia, Malaysia, Thailand and Singapore, as well as Papua New Guinea and Australia.
Reuters could not immediately verify the FT report. AkzoNobel and Nippon Paint did not immediately respond to Reuters' requests for comment.
Nippon Paint submitted multiple proposals to acquire AkzoNobel's decorative paints business, AkzoNobel said in July, valuing it at about €7.5 billion ($8.44 billion). That approach followed the withdrawal of a €12.5 billion bid for the entire company that Nippon Paint had pursued jointly with US-based paintmaker Sherwin-Williams in June.
The FT report added that Nippon remains interested in a larger deal for the decorative paint business, but that integration of the Southeast Asia business could occupy the company for some time and that AkzoNobel does not have plans to sell further assets from the business.