Nippon Paint Returns With €7.5B Proposal for AkzoNobel Business
AkzoNobel has confirmed receiving multiple conditional, nonbinding proposals from Nippon Paint Holdings Co. to acquire its Decorative Paints business at an indicative enterprise valuation of €7.5 billion on a cash-free, debt-free basis.
In a separate statement responding to media reports, Nippon Paint confirmed that it had proposed acquiring the business for €7.5 billion. The company said no specific decisions regarding the potential acquisition have been made and that it would disclose any material developments as required.
AkzoNobel said the offer qualifies as an “Alternative Proposal” under its merger agreement with Axalta Coating Systems Ltd., which restricts the company from engaging with Nippon Paint. AkzoNobel also said the proposal significantly undervalues the Decorative Paints business and that it had previously communicated that position to Nippon Paint.
The boards of management and supervisory board continue to unanimously recommend AkzoNobel’s proposed all-stock merger of equals with Axalta. The transaction, announced in November 2025, would create a coatings company with an enterprise value of approximately $25 billion.
The latest proposal represents a renewed effort by Nippon Paint to acquire part of AkzoNobel. Nippon Paint and The Sherwin-Williams Co. previously made a joint proposal to acquire the entire company, with plans to divide its Decorative Paints and Performance Coatings operations. The companies ended that pursuit in June after AkzoNobel rejected their offers.
AkzoNobel and Axalta shareholders are scheduled to vote on the proposed merger Aug. 5. AkzoNobel said it will issue additional announcements if appropriate.
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