Nippon Paint Holdings is reported to be nearing an agreement to acquire AkzoNobel’s Southeast Asian decorative paints business for more than $1 billion. The regions covered include Vietnam and Indonesia, among others, and the deal could be completed soon.
Multiple sources reported that Nippon Paint Holdings is nearing an agreement to acquire the Southeast Asian decorative paints business of Dutch coatings giant AkzoNobel for more than $1 billion. The transaction could reach an agreement as early as Monday.
The business reportedly includes decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand and Singapore, as well as Papua New Guinea and Australia. The sale is consistent with AkzoNobel’s policy of withdrawing from non-core markets.
AkzoNobel CEO Grégoire Poux-Guillaume (グレゴワール・プー＝ギヨーム) has pursued a policy of withdrawing from peripheral markets in Southeast Asia, and the transaction is said to form part of that strategy. Nippon Paint had previously made multiple offers for the business.
The Financial Times also reported, citing people familiar with the matter, that Nippon Paint remains interested in a larger acquisition of AkzoNobel’s decorative paints business. AkzoNobel, however, is not currently planning any further asset sales from the business, according to reports.