Nippon Paint to buy AkzoNobel’s Southeast Asia architectural paints unit for $1.35bn
In short
Nippon Paint Holdings announced on 5 October that it will acquire AkzoNobel’s Southeast Asian architectural paints business, with Nikkei putting the price at $1.35 billion (about ¥210 billion). Co-president Yuichiro Wakatsuki said at an online news conference that Southeast Asia is the market where the company has its strongest business base, according to Nikkei. Earlier the same day, TBS NEWS DIG, citing the Financial Times and Bloomberg, reported AkzoNobel was close to signing the sale for well above $1 billion and that agreement could come as early as 5 October.
Why it matters
The purchase would put AkzoNobel’s higher-priced architectural paint brands under a Japanese owner in Southeast Asia, a region Nikkei describes as Nippon Paint’s strongest market. Nikkei reported the company’s share price rebounded after the announcement, indicating investor attention on the deal. The documents give no figures on the size of the acquired business, so the wider market impact cannot be assessed from them.
Key facts
- Nippon Paint Holdings announced on 5 October that it will acquire AkzoNobel’s Southeast Asian architectural paints business. [ 1 , 2 , 4 ]
- Nikkei reported the acquisition price as $1.35 billion, or about ¥210 billion. [ 1 ]
- TBS NEWS DIG, citing the Financial Times and Bloomberg, reported the sale value would be well above $1 billion (about ¥157.8 billion). [ 2 ]
- Nippon Paint Holdings co-president Yuichiro Wakatsuki said at an online news conference that Southeast Asia is the market where the company has its strongest business base. [ 1 ]
- Nikkei reported that Nippon Paint Holdings’ share price rebounded following the acquisition announcement, without giving figures. [ 3 ]
- Tokyo Shimbun reported the deal as a purchase of a Southeast Asian architectural paints business from the Dutch major, AkzoNobel. [ 4 ]
Confirmed by several sources
- Nippon Paint Holdings is acquiring AkzoNobel’s Southeast Asian architectural (decorative) paints business. [ 1 , 2 , 4 ]
- News of the transaction emerged on 5 October: Nikkei reported it as announced by the company, and TBS NEWS DIG, citing the FT and Bloomberg, reported agreement could come as early as the same day. [ 1 , 2 ]
Still unclear
- Whether the transaction had been signed and closed at the time of reporting. Nikkei reported the acquisition as announced by the company on 5 October, while TBS NEWS DIG, citing the Financial Times, described the contract signing as imminent as of the same day, so the documents differ on the status of the agreement.
- The final value of the transaction. Only Nikkei gives a figure, $1.35 billion (about ¥210 billion); TBS NEWS DIG, citing the FT and Bloomberg, says only that the price is well above $1 billion (about ¥157.8 billion), without a final number.
- Which countries and brands are included in the Southeast Asian business, and how large it is. No document specifies the countries covered, the brands involved or the size of the unit.
- AkzoNobel’s own comment on the sale. None of the documents contains a statement from AkzoNobel.
What local media are saying
Timeline, local time
- Nikkei reports that Nippon Paint Holdings will acquire AkzoNobel’s Southeast Asian architectural paints business for $1.35 billion (about ¥210 billion). [ 1 ]
- TBS NEWS DIG, citing the Financial Times and Bloomberg, reports that AkzoNobel is close to signing the sale of its Southeast Asian decorative paints business to Nippon Paint, for well above $1 billion. [ 2 ]
- Nikkei reports that Nippon Paint Holdings’ share price rebounded after the acquisition announcement. [ 3 ]
- Tokyo Shimbun reports the purchase of a Southeast Asian architectural paints business from the Dutch major. [ 4 ]