Netherlands’s AkzoNobel Rejects Nippon Paint Offer for Decorative Paints

AkzoNobel, a Netherlands-based company, has publicly declined a purchase proposal from Nippon Paint Holdings Co. regarding its Decorative Paints division.

Nippon Paint submitted several conditional and non-binding offers with an indicative enterprise value of approximately €7.5 billion (around $8.8 billion), excluding cash and debt.

Proposal Classification and Restrictions

According to AkzoNobel, these proposals fall under the category of Alternative Proposals as defined in its merger agreement with Axalta Coating Systems Ltd. This classification prevents AkzoNobel from engaging with Nippon Paint regarding the offer.

Valuation Concerns from AkzoNobel

AkzoNobel considers Nippon Paint’s valuation to substantially undervalue its Decorative Paints segment, a position it has communicated previously.

Support for Merger with Axalta

The management and supervisory boards of AkzoNobel continue to fully support the planned all-stock merger of equals with Axalta, citing strategic advantages outlined in a joint press release dated November 18, 2025.

The company has indicated that any future updates will be shared when appropriate.

Key Takeaways

• AkzoNobel rejects Nippon Paint’s offer for its Decorative Paints division.
• Nippon Paint’s proposals are conditional and non-binding, valued at about €7.5 billion excluding cash and debt.
• Proposals are classified as Alternative Proposals, restricting AkzoNobel from engaging with Nippon Paint.
• AkzoNobel believes the offer undervalues its Decorative Paints segment.
• The company remains committed to a planned merger with Axalta Coating Systems Ltd.