Nippon Paint bids $8.55bn for AkzoNobel unit
Nippon Paint has proposed a €7.5 billion takeover of AkzoNobel’s decorative paints division, testing the Dutch company's commitment to its pending merger with Axalta amid industry consolidation driven by tariff pressures.
Nippon Paint submitted a €7.5 billion offer for AkzoNobel’s decorative paints business last week, according to people familiar with the situation. The Japanese company has actually approached the Dutch coatings group multiple times over the past month. Despite the significant size of the proposal, AkzoNobel’s management has refused to engage in discussions or notify its shareholders about the approach.
The latest bid values the unit, which produces the Dulux brand, at approximately 12 times its projected 2026 earnings before interest, taxes, depreciation, and amortization. This targeted approach follows a failed joint attempt by Nippon Paint and U.S.-based Sherwin-Williams to acquire the entirety of AkzoNobel for €12.5 billion. That broader proposal was rejected in May, prompting the consortium to formally withdraw its offer.
When it dismissed the full-company takeover, AkzoNobel argued the bid undervalued the business. Management also cited a lack of certainty regarding regulatory clearances and the structural complications of splitting the firm between two separate buyers. Rather than entertaining the new, narrower proposal, the Dutch group is proceeding with its previously announced strategy to merge with American coatings manufacturer Axalta. Shareholders from both AkzoNobel and Axalta are scheduled to vote on that tie-up on August 5.
The persistence of Nippon Paint underscores the strategic value AkzoNobel’s decorative division holds for Asian buyers looking to expand their global footprint. However, sources caution that the Japanese firm could still abandon its pursuit if AkzoNobel's board maintains its rigid stance against negotiations.
For market participants, this unsolicited approach highlights the intense M&A pressure currently reshaping the global paint and coatings sector. Manufacturers are racing to consolidate operations primarily to cut costs and improve margins. This urgency is being driven by a mix of fierce market competition, rising input expenses, and unpredictable trade policies, specifically U.S. tariffs on imported goods introduced by President Donald Trump.
