AkzoNobel to sell unit to Nippon Paint for over $1 billion, FT reports

AkzoNobel Nears $1 Billion Sale of Southeast Asia Paints Unit to Nippon Paint

AkzoNobel's Strategic Divestment in Southeast Asia

Deal Overview

Oct 4 (Reuters) - Dulux paint maker AkzoNobel is nearing a deal to sell its Southeast Asian decorative paints business to Nippon Paint for well over $1 billion, the Financial Times reported on Sunday, citing people familiar with the matter.

Details of the Agreement

Geographic Scope of the Divestment

The Dutch company could reach an agreement as early as Monday, the newspaper said. The divestment would include decorative paint operations in Vietnam, Indonesia, Malaysia, Thailand and Singapore, as well as Papua New Guinea and Australia. 

Verification and Responses

Reuters could not immediately verify the FT report. AkzoNobel and Nippon Paint did not immediately respond to Reuters' requests for comment.

Background and Previous Bids

Nippon Paint's Acquisition Proposals

Nippon Paint submitted multiple proposals to acquire AkzoNobel's decorative paints business, AkzoNobel said in July, valuing it at about €7.5 billion ($8.44 billion). That approach followed the withdrawal of a €12.5 billion bid for the entire company that Nippon Paint had pursued jointly with US-based paintmaker Sherwin-Williams in June.

Future Prospects for Further Deals

Nippon Paint's Ongoing Interest

The FT report added that Nippon remains interested in a larger deal for the decorative paint business, but that integration of the Southeast Asia business could occupy the company for some time and that AkzoNobel does not have plans to sell further assets from the business. 

Additional Information

($1 = 0.8887 euros)

(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Nia Williams)