Nippon Paint has made a €7.5 billion ($8.55 billion) offer to acquire AkzoNobel’s decorative paints division, according to a report by Reuters.
This move follows Nippon Paint’s withdrawal last month of a joint bid with U.S.-based Sherwin-Williams to buy the entire firm for €12.5 billion.
The proposal comes amid consolidation trends in the paint industry, driven by rising raw material costs, competitive pressures, and the impact of U.S. tariffs on imported goods.
AkzoNobel, known for its Dulux brand, had previously rejected Nippon and Sherwin-Williams’ full acquisition offer in May.
Instead, it is pursuing a merger with U.S. coatings firm Axalta, a deal expected to generate $600 million in cost synergies and allow the combined entity to concentrate on industrial coatings, which tend to be more resilient during consumer slowdowns than decorative paints.
AkzoNobel CEO Greg Poux-Guillaume confirmed he will continue as the company’s chief executive following the merger. Shareholders of both companies are scheduled to vote on the tie-up on August 5.
According to Bloomberg News, Nippon Paint has submitted multiple offers over the past month for AkzoNobel’s decorative unit, but the company has neither formally informed shareholders nor engaged with the bidder.
Earlier, Nippon and Sherwin-Williams’ full acquisition bid was viewed by AkzoNobel as undervaluing the company, lacking regulatory certainty, and presenting operational complexities by splitting the firm between two suitors.
Nippon Paint’s latest offer specifically targets the decorative paints segment, potentially allowing AkzoNobel to continue focusing on its industrial coatings strategy and Axalta merger.
While the bid signals Nippon Paint’s strategic intent to expand in Europe, it has yet to elicit a response from AkzoNobel, which has declined comment outside regular business hours.
Following the announcement, Nippon Paint’s shares dropped approximately 3.8% to trade around 1,033 yen, reflecting investor caution over the uncertain outcome of the proposal and AkzoNobel’s commitment to the Axalta merger.
The transaction underscores the ongoing consolidation wave in the global paints and coatings sector, as firms seek cost efficiencies, growth in resilient segments, and strategic positioning amid market uncertainties.
