Akzo Nobel eyes decorative paint disposals in Asia after $1.6 billion India unit sale

By Dimitri Rhodes

(Reuters) -Dulux paints maker Akzo Nobel plans to focus on its business-to-business offering in Asia during the next phase of its portfolio review, after the $1.6 billion sale of its India unit in June, its chief executive said on Tuesday.

It will do this by increasing investments in coatings while selling off some decorative paints units in the region, CEO Greg Poux-Guillaume told Reuters.

Performance coatings made up 62% of the group's adjusted core earnings in 2024.

"Our aim is to be a market leader in everything that we do, and wherever we're not, we have to reassess," Poux-Guillaume said.

Akzo Nobel, which sells decorative paints to consumers and professionals and specialised coatings used by many industries, had launched the first phase of the review in South Asia in October 2024.

At the time, it called the region "ripe for consolidation" and said it would explore options including partnerships, joint ventures, mergers and divestitures.

It now intends to apply the strategic framework used in India to other businesses and assets across Asia, with a focus on disposals rather than acquisitions, Poux-Guillaume told analysts in a post-earnings call.

Asked about a recent Bloomberg News report that Akzo Nobel was considering the acquisition of BASF's coatings arm, he said it had not committed to any such process.

"We don't have the balance sheet for it ... and also we don't need the distraction at this point," Poux-Guillaume said. "BASF is looking for a cash transaction, and this is not something that we'll do."

The sale of Akzo Nobel's liquid coatings business in India to JSW included a clause that it would retain the Dulux intellectual property and continue as the product's technology provider in the country, receiving a royalty of 4.5% of sales.

Poux-Guillaume said future disposals were unlikely to include such agreements, as the entities under consideration were wholly owned by Akzo Nobel and not publicly listed.

(Reporting by Dimitri Rhodes in Gdansk, editing by Milla Nissi-Prussak)