AkzoNobel to sell unit to Nippon Paint for over $1 billion, FT reports

By Reuters News

Oct 4 (Reuters) - Dulux paint maker AkzoNobel AKZO.AS is nearing a deal to sell its Southeast Asian decorative paints business to Nippon Paint 4612.T for well over $1 billion, the Financial Times reported on Sunday, citing people familiar with the matter.

The Dutch company could reach an agreement as early as Monday, the newspaper said. The divestment would include decorative paint operations in Vietnam, Indonesia, Malaysia, Thailand and Singapore, as well as Papua New Guinea and Australia.

Reuters could not immediately verify the FT report. AkzoNobel and Nippon Paint did not immediately respond to Reuters' requests for comment.

Nippon Paint submitted multiple proposals to acquire AkzoNobel's decorative paints business, AkzoNobel said in July, valuing it at about €7.5 billion ($8.44 billion). That approach followed the withdrawal of a €12.5 billion bid for the entire company that Nippon Paint had pursued jointly with US-based paintmaker Sherwin-Williams SHW.N in June.

The FT report added that Nippon remains interested in a larger deal for the decorative paint business, but that integration of the Southeast Asia business could occupy the company for some time and that AkzoNobel does not have plans to sell further assets from the business.

($1 = 0.8887 euros)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.