Nippon Paint offers $8.6bn for AkzoNobel decorative paints unit

Key facts

• Nippon Paint has offered 7.5 billion euros ($8.55 billion) for AkzoNobel's decorative paints business.
• The offer was made by Nippon Paint after its previous joint bid with Sherwin-Williams for AkzoNobel's entire company was rejected.
• AkzoNobel is instead pursuing a merger with U.S. coatings maker Axalta.
• Shareholder meetings for AkzoNobel and Axalta to vote on their merger are scheduled for August 5.

Japanese paint manufacturer Nippon Paint has submitted a 7.5 billion euro ($8.55 billion) offer to acquire the decorative paints business of Dutch company AkzoNobel. This move follows the rejection of a prior, larger joint bid by Nippon Paint and U.S. firm Sherwin-Williams, which sought to acquire AkzoNobel's entire business for 12.5 billion euros.

AkzoNobel had previously stated that the joint offer from Nippon Paint and Sherwin-Williams undervalued its business and lacked certainty regarding regulatory approvals. Instead, AkzoNobel is proceeding with its earlier plan to merge with another U.S. coatings maker, Axalta. Shareholders from both AkzoNobel and Axalta are scheduled to vote on this proposed merger on August 5.

Nippon Paint has reportedly made multiple offers in the past month, but AkzoNobel has not engaged with the latest proposal. The paint industry is experiencing a trend of mergers and acquisitions as companies seek cost savings amidst rising expenses, intense competition, and market uncertainty, partly influenced by trade policies such as U.S. tariffs.