Nippon Paint bids €7.5bn for AkzoNobel decorative unit
Nippon Paint's targeted bid for AkzoNobel's decorative division tests the Dutch firm's commitment to its upcoming Axalta merger amid an industry-wide push for consolidation.
Nippon Paint has made a €7.5 billion offer to acquire AkzoNobel’s decorative paints business. This marks a strategic pivot from the Japanese company's previous attempt to buy the entire Dutch group.
The manufacturer confirmed the proposal on Monday. According to people familiar with the situation, AkzoNobel has not engaged with the offer, which was submitted last week, nor has it informed its shareholders.
This targeted bid follows a rejected joint approach in May. Nippon Paint and U.S.-based Sherwin-Williams had together offered €12.5 billion for all of AkzoNobel. At the time, AkzoNobel dismissed that proposal, citing an undervaluation of its business, a lack of certainty regarding regulatory clearances, and the complications of splitting the company between two separate suitors.
Rather than entertaining Nippon Paint's latest approach, AkzoNobel is moving forward with a planned merger with Axalta, another American coatings maker. Shareholder meetings to vote on the Axalta transaction are scheduled for August 5.
The ongoing pursuit underscores the strategic appeal of AkzoNobel’s decorative segment, which includes the Dulux brand. A successful divestiture of this unit would fundamentally alter AkzoNobel's corporate structure. However, Nippon's unsolicited approach faces high hurdles given the firm's current priorities.
This competitive maneuvering occurs as the global paints sector races to consolidate. Manufacturers are under severe pressure from escalating costs and intense market competition. Additionally, U.S. President Donald Trump's tariffs on imported goods have injected further uncertainty into supply chains, making cost-saving mergers a priority for executives.
Nippon Paint stated that no specific matters regarding the acquisition have been finalized. AkzoNobel did not respond to a request for comment outside regular business hours. With the Axalta vote looming, investors must now weigh whether that transaction effectively blocks Nippon's path entirely.
