Announcement
Nippon Paint has submitted a proposal to acquire the decorative paints business of Akzo Nobel NV for an estimated €7.5 billion, which is equivalent to roughly $8.6 billion. The Japanese paint maker disclosed that the offer has been made but no decision has been taken and there is no certainty that a transaction will be completed.
Akzo Nobel’s Response
Akzo Nobel confirmed receipt of multiple proposals for its decorative paints unit and stated that the offers, including the Nippon Paint proposal, significantly undervalue the business. The company reiterated its commitment to the previously announced merger with Axalta Coating Systems, indicating that the board remains focused on completing that transaction.
Market Reaction
Following the news, Akzo Nobel shares listed on Euronext Amsterdam rose 1.2% to €58.06, outperforming the broader AEX index, which was largely unchanged. The stock tickers reflected modest movements: AKZO +1.78%, AXTA -0.12%, and Nippon Paint (ticker 4612) -2.14%.
Analyst Commentary
Jefferies assessed that the €7.5 billion valuation represents only a modest premium over what the brokerage believes the decorative paints unit is worth on a standalone basis. The firm suggested that the bid could reignite debate over whether Akzo Nobel’s individual businesses are more valuable separately than within the current group structure.
Strategic Context
Nippon Paint indicated that the acquisition is part of its strategy to expand its global footprint, leveraging well‑known brands such as Dulux, which currently resides within Akzo Nobel’s decorative paints portfolio.
Additional Notes
Bloomberg News was the first outlet to report the potential deal, citing sources familiar with the matter. Nippon Paint later confirmed the submission of the proposal but emphasized that no definitive decision has been made.