Nippon Paint Revives Bid for AkzoNobel's Decorative Paint Business with €7.5 Billion Offer

Nippon Paint has reportedly renewed its efforts to acquire AkzoNobel's decorative paints business, submitting multiple proposals over the past month, including a latest offer valuing the unit at €7.5 billion (around $8.55 billion). The development comes just weeks after an earlier consortium bid involving Sherwin-Williams to acquire AkzoNobel's entire business was rejected.

According to media reports, AkzoNobel's management has not engaged with the latest proposal, raising questions over whether the Dutch coatings company remains committed to its existing strategic plans.

Fresh Bid Follows Rejected Takeover Proposal

Earlier this year, Nippon Paint and Sherwin-Williams jointly proposed acquiring AkzoNobel for €12.5 billion, but the offer was turned down in May. AkzoNobel said the proposal undervalued the company, carried regulatory uncertainties, and involved splitting the business between two buyers.

The latest approach narrows the focus to AkzoNobel's decorative paints division instead of the entire company. Reports suggest the offer values the business at roughly 12 times its projected 2026 EBITDA, although AkzoNobel has reportedly not entered into discussions with Nippon Paint or informed shareholders about the proposal.

AkzoNobel Stays Focused on Axalta Merger

Rather than pursuing the proposed sale, AkzoNobel continues to move ahead with its planned merger with US-based coatings manufacturer Axalta. Shareholders of both companies are scheduled to vote on the proposed transaction on August 5, making it a key event that could shape the future of the global paints industry.

The merger is part of a broader consolidation trend across the coatings sector, where companies are seeking scale, operational efficiencies and stronger pricing power amid rising raw material costs, intense competition and global trade uncertainties, including the impact of US tariff policies.

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Conclusion

Nippon Paint's latest proposal highlights the continued interest in high-quality coatings assets despite challenging market conditions. However, with AkzoNobel prioritising its merger with Axalta and showing little willingness to engage on the latest offer, the outcome remains uncertain. Investors will closely watch the upcoming shareholder vote and any further developments that could reshape the global paints and coatings industry.

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