Investing.com — Shares of Nippon Paint Holdings rose on Monday after the Japanese paintmaker agreed to buy AkzoNobel’s decorative paints businesses across Southeast Asia, Australia and Papua New Guinea for $1.35 billion, expanding its regional footprint.
Shares rose 1% to 1,169 yen, lagging the broader Japanese market, with the Nikkei 225 up 2.28% in Monday trading.
The transaction covers AkzoNobel’s decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea and Australia and represents an enterprise value of about $1.35 billion.
AkzoNobel said the deal values the business at 21 times 2025 EBITDA, while Nippon Paint puts the purchase price at about 16 times projected 2026 EBITDA.
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The businesses generated $291 million of revenue and $65 million of EBITDA in 2025, according to Nippon Paint, with an EBITDA margin of about 22%.
Nippon said the acquisition is expected to be profit accretive after completion and sees opportunities for savings through joint procurement, manufacturing and logistics, cross-selling and lower overhead.
The acquisition will be funded through cash and bank borrowings rather than issuing new shares, limiting immediate dilution for existing shareholders.
The Indonesia transaction is expected to close separately in late 2026, while the remaining transactions are expected to be completed around mid-2027, subject to regulatory approvals.
The deal marks a partial success for Nippon Paint after it previously sought to acquire AkzoNobel’s entire decorative paints business.
Akzo had rejected proposals valuing that broader business at about €7.5 billion, while Nippon Paint and Sherwin-Williams also abandoned a joint attempt to acquire the entire company earlier this year.
Original Article
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