The deal covers AkzoNobel's decorative paints operations in seven countries, including Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia, the company said in a statement on Monday.

The transaction values the business at about 21 times its 2025 EBITDA (earnings before interest, taxes, depreciation and amortization). AkzoNobel expects to receive around $1 billion in net cash proceeds after taxes and payments to minority partners.

The deal is subject to customary closing conditions, including regulatory approvals. The Indonesia transaction is expected to close separately in late 2026, while the other transactions are expected to be completed by mid-2027.

The transaction is part of AkzoNobel's previously announced portfolio rebalancing strategy. The company has already sold its decorative paints businesses in India and Pakistan, making the planned Southeast Asian divestment the final step in its review of the decorative paints portfolio in Asia.

“The successful completion of our Asia portfolio review is part of an ongoing strategy to focus our portfolio on areas where we can achieve differentiating scale and strengthen our position,” AkzoNobel CEO Greg Poux-Guillaume said.

For Nippon Paint, the acquisition will add AkzoNobel's decorative paints operations and brands to its existing businesses across the seven markets.

“We are excited to welcome these businesses and talented teams to our Group,” Wee Siew Kim, director, representative executive officer and co-president of Nippon Paint, said. He also stated the company would build on the businesses' existing foundations while maintaining the quality, experience and local expertise valued by customers.

AkzoNobel has operated in Vietnam since 1992 and currently has four manufacturing facilities in Dong Nai city, Ho Chi Minh City, and Bac Ninh city. Its HCMC plant produces decorative paints, while the facilities in Dong Nai and Bac Ninh manufacture a range of industrial paints and coatings.

The HCMC operation is particularly relevant to the transaction because AkzoNobel's business put for sale to Nippon Paint includes its decorative paints operations in Vietnam under the Dulux brand.

Nippon Paint has also built a substantial manufacturing footprint in Vietnam. The Japanese coatings maker established its Vietnamese business in 1994 and opened its first plant at Bien Hoa II Industrial Park in Dong Nai.

It expanded production with a second plant in Hanoi in 2008, a third in Phu Tho province in 2014, and a fourth in HCMC in 2020. The company has also expanded beyond traditional paint products. In 2019, it introduced Selleys, a brand of DuluxGroup, and V Tech products to the Vietnamese market.