LONDON: In a bold move that could reshape the global coatings industry, Nippon Paint has confirmed it submitted a €7.5 billion ($8.55 billion) offer to acquire AkzoNobel’s decorative paints business. The unsolicited bid, announced Monday, comes just months after a much larger joint takeover attempt was rebuffed.
The Japanese paint giant had previously teamed up with U.S.-based Sherwin-Williams in a €12.5 billion bid for all of AkzoNobel—the Dutch maker of the iconic Dulux brand. That offer was flatly rejected in May, leading both suitors to withdraw their joint proposal.
According to reports from Bloomberg News, which first broke the story on Sunday, Nippon Paint has made multiple approaches over the past month. The latest €7.5 billion proposal was reportedly tabled last week, but AkzoNobel has yet to engage in talks or inform its shareholders, sources familiar with the matter told Bloomberg.
Nippon Paint acknowledged in its statement that “no specific matters regarding the acquisition have been decided,” while AkzoNobel did not respond to requests for comment outside regular business hours.
A Split Strategy After Failed Takeover
AkzoNobel had previously dismissed the joint Nippon-Sherwin offer as undervaluing the company and flagged concerns over regulatory hurdles, noting that the deal would effectively carve up the business between two rivals.
Instead, AkzoNobel is moving forward with a separate plan to merge with U.S. coatings manufacturer Axalta. Both companies are scheduled to hold shareholder votes on that proposed merger on August 5.
Industry Consolidation Heats Up
The acquisition push comes as paint manufacturers increasingly look to consolidate in response to rising raw material costs, fierce competition, and trade policy uncertainty fueled by U.S. President Donald Trump’s tariffs on imported goods. With margins under pressure, major players are betting on scale to weather the storm.
For now, all eyes are on AkzoNobel as it weighs its next move—whether to entertain Nippon’s latest offer or stay the course with the Axalta merger.
(*Currency conversion: $1 = €0.8775*)
