Nippon Paint Offers US$8.6 Billion to Acquire AkzoNobel’s Decorative Paints Business

Nippon Paint Holdings has submitted a US$8.6 billion (€7.5 billion) proposal to acquire AkzoNobel’s decorative paints business, marking its latest attempt to expand its global footprint and reshape the competitive landscape of the paints industry.

The proposed acquisition follows an earlier unsuccessful joint bid by Nippon Paint and Sherwin-Williams to acquire AkzoNobel in its entirety. This time, Nippon Paint has targeted only the decorative paints division, which includes globally recognized brands such as Dulux. If completed, the acquisition would significantly strengthen Nippon Paint’s presence in Europe while unifying ownership of the Dulux brand across multiple international markets.

AkzoNobel, however, has rejected the proposal, stating that the offer significantly undervalues the decorative paints business. The company also reiterated that its management and supervisory boards continue to unanimously support the planned merger with U.S.-based Axalta Coating Systems, a transaction expected to create one of the world’s largest coatings companies with an enterprise value of approximately US$25 billion.

The renewed bid reflects increasing consolidation across the global paints industry as manufacturers seek greater scale, operational efficiencies, and stronger international market positions amid rising raw material costs and slower demand. While Nippon Paint has confirmed submitting the proposal, it has also stated that no final decision has been made regarding a potential acquisition.

The outcome of the proposed Axalta merger, which is scheduled for shareholder approval in August, is expected to play a crucial role in determining the future of AkzoNobel’s decorative paints business and any potential transaction involving Nippon Paint.