Nippon Paint Holdings has made an offer of €7.5 billion ($8.6 billion) to purchase AkzoNobel's decorative paints unit. This bid follows a previous attempt in May where Nippon Paint, alongside U.S.-based Sherwin-Williams, offered €12.5 billion for AkzoNobel's entire business, which was subsequently rejected. AkzoNobel, known for its Dulux brand of paints, had stated that previous offers undervalued the company, presented regulatory clearance uncertainties, and would split the company between two suitors.
AkzoNobel had not engaged with Nippon Paint on this latest offer nor had it communicated the proposals to its shareholders, according to sources familiar with the matter. The current offer values the decorative paints unit at approximately 12 times its 2026 earnings before interest, taxes, depreciation, and amortization. Nippon Paint's shares experienced a decline of up to 3.4% following the news of the bid.
Despite Nippon Paint's renewed interest, AkzoNobel is proceeding with its plan to merge with U.S. coatings maker Axalta. The two companies are scheduled to hold shareholder meetings on August 5 to vote on this merger. The deal with Axalta would create an entity with an enterprise value of about $25 billion, with AkzoNobel owning 55% and relocating its stock market listing to New York from Amsterdam. This merger still requires regulatory approval from the Federal Trade Commission in the U.S.
