AkzoNobel set to sell Southeast Asia paints business to Nippon Paint

Dutch paint manufacturer AkzoNobel is close to finalizing a deal to sell its Southeast Asian decorative paints business to Nippon Paint for over $1 billion, according to a report by the Financial Times. The agreement could be formalized as early as Monday, the report stated, citing sources familiar with the matter. The transaction would cover operations in Vietnam, Indonesia, Malaysia, Thailand, and Singapore, along with Papua New Guinea and Australia.

Reuters was unable to independently confirm the FT report, and both AkzoNobel and Nippon Paint declined to comment on the matter. Earlier this year, Nippon Paint had expressed interest in acquiring AkzoNobel's decorative paints business, valuing it at approximately €7.5 billion ($8.44 billion). This followed the withdrawal of a €12.5 billion joint bid for the entire company by Nippon Paint and Sherwin-Williams in June.

The Financial Times noted that while Nippon Paint remains interested in a larger deal, integrating the Southeast Asian business could take considerable time. AkzoNobel reportedly has no plans to sell additional assets from the decorative paints business.