Nippon Paint Holdings has entered into a series of agreements to acquire Akzo Nobel decorative paints businesses across seven Asia-Pacific markets for a combined $1.35 billion, or approximately JPY 216 billion.
The agreements, signed on October 3, 2026, cover share acquisitions in Vietnam, Indonesia, Malaysia and Singapore, along with transfers of decorative paints business operations in Thailand, Australia and Papua New Guinea.
Nippon Paint Singapore Company will acquire shares in Akzo Nobel’s decorative paints operations in Vietnam and Singapore.
Nippon Paint Malaysia will acquire the Malaysian decorative paints subsidiary, while Nippon Paint Hong Kong will acquire a 100% interest in Akzo Nobel’s decorative paints joint venture in Indonesia from Akzo Nobel and its partner.
The Indonesian transaction is structured separately from the other acquisitions and transfers.
In Thailand, Akzo Nobel’s decorative paints operations will be transferred to Nippon Paint Decorative Coatings Thailand.
DuluxGroup will acquire the corresponding business operations in Australia and Papua New Guinea.
The acquired businesses will become consolidated subsidiaries of Nippon Paint following completion of the transactions.
Across all of the contemplated transactions, Nippon Paint will pay approximately $1.35 billion, based on an exchange rate of $1 to JPY 160 used in the company’s announcement.
The acquired businesses generated consolidated revenue of approximately $291 million during the fiscal year ended December 2025, compared with $299 million in 2024.
EBITDA totaled approximately $65 million in 2025, compared with $69 million during 2024.
The businesses produced an EBITDA margin of approximately 22% in 2025 and 23% in the prior year.
Nippon Paint views Akzo Nobel’s decorative paints operations in the region as established businesses with strong distribution networks, recognizable brands and existing manufacturing and supply systems.
The company highlighted Vietnam, Indonesia, Malaysia and Singapore among markets where the acquired operations already have established foundations.
Nippon Paint also sees the businesses as having significant cash-generation capabilities and additional growth potential under its ownership.
The transaction is intended to reinforce Nippon Paint’s position in Southeast Asian decorative paints while providing opportunities to integrate the acquired operations with its existing NIPSEA Group network.
Nippon Paint plans to pursue collaboration across procurement, manufacturing, logistics and sales to increase operating efficiency and generate synergies.
Management believes those initiatives can strengthen competitiveness while supporting both organic expansion and additional growth through M&A.
Nippon Paint already operates regionally focused businesses across Southeast Asia through NIPSEA Group, supported by established distribution networks, brand recognition and supply capabilities.
The acquisition is consistent with Nippon Paint’s Asset Assembler strategy, under which the company seeks to combine organic earnings-per-share growth with acquisitions in resilient growth markets.
The company expects to fund the acquisitions with a combination of bank borrowings and cash on hand.
Nippon Paint said it does not plan to issue new shares to finance the transactions.
Full completion of the share acquisitions and business transfers is expected around mid-2027.
The Indonesian acquisition is expected to close earlier, in late 2026.
Nippon Paint expects the transactions to have an insignificant impact on its financial results for the fiscal year ending December 31, 2026.
