Nippon Paint Holdings is pursuing negotiations to acquire Akzo Nobel's architectural coatings business in Southeast Asia. The expansion of revenue to approximately three times its previous level over the past 8 years is cited as the backdrop.
According to Nikkei reports, Nippon Paint Holdings (HD) has continued behind-the-scenes negotiations with Dutch coatings giant Akzo Nobel and is reported to have decided to acquire its architectural coatings business in Southeast Asia. Akzo is said to have repeatedly rejected the acquisition proposal. The deal is expected to strengthen Japanese companies' business base in the Southeast Asian market.
As the aim of the acquisition, Nippon Paint HD has cited strengthening its brand and expanding its customer base in Southeast Asia. The focus is expected to be on maintaining growth amid the ongoing restructuring of the coatings industry.
Revenue is said to have reached approximately three times its level of 8 years ago, and expanding the scale of the business through M&A is positioned as a core pillar of the company's growth strategy. Further brand expansion and customer acquisition efforts, particularly in Southeast Asia, will continue to attract attention.