AkzoNobel could sell unit to Nippon Paint for over $1 billion, FT reports
AkzoNobel has agreed to sell its Southeast Asian decorative paints business to Nippon Paint for $1.35 billion. This move is part of a broader strategy to streamline the company's portfolio and focus on core markets.
Why it matters
The deal represents a significant consolidation in the global paint and coatings industry, impacting market competition in the Asia-Pacific region.
Oct 5 (Reuters) - AkzoNobel said on Monday it has agreed to sell its Southeast Asian decorative paints business to Nippon Paint for $1.35 billion, completing a review of its Asian decorative paints portfolio.
The sale covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia, the Dutch paints maker said, adding that it expects net cash proceeds of about $1 billion after tax and payments to minority partners.
The Dulux paintmaker earlier divested its decorative paints operations in India and Pakistan for $1.6 billion and 50 million euros, respectively.
"The successful completion of our Asia portfolio review is part of an ongoing strategy to focus our portfolio on areas where we can achieve differentiating scale and strengthen our position," AkzoNobel Chief Executive Greg Poux-Guillaume said in a statement.
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