AkzoNobel confirmed that it has received multiple conditional and non-binding proposals from Nippon Paint Holdings regarding a potential acquisition of its Decorative Paints business at an indicative enterprise valuation of €7.5 billion.
The proposed valuation is presented on a cash-free and debt-free basis. AkzoNobel disclosed the approaches after noting recent media reports concerning Nippon Paint’s interest in the business.
However, AkzoNobel said the proposals represent an “Alternative Proposal” under the terms of its existing merger agreement with Axalta Coating Systems. The agreement restricts AkzoNobel from engaging with Nippon Paint regarding the offers.
AkzoNobel also stated that Nippon Paint’s proposed €7.5 billion valuation significantly undervalues the Decorative Paints business. The company said it had previously communicated this position directly to Nippon Paint.
The Decorative Paints business includes AkzoNobel’s portfolio of consumer and professional paint brands and represents a significant portion of the company’s global operations. Nippon Paint’s interest highlights the strategic value of established coatings brands, distribution networks, manufacturing capabilities, and customer relationships as the global paints and coatings industry continues to consolidate.
Despite the proposals, AkzoNobel’s Board of Management and Supervisory Board continue to unanimously support the planned merger of equals with Axalta. The boards cited the strategic rationale and anticipated benefits outlined when the companies announced the proposed transaction on November 18, 2025.
The AkzoNobel-Axalta combination is intended to create a larger global coatings company with complementary businesses, an expanded geographic presence, and greater capabilities across decorative and performance coatings markets.
AkzoNobel did not indicate whether Nippon Paint could submit a revised proposal or whether circumstances could eventually permit further discussions. The company said additional announcements would be issued if and when appropriate.
