Oct 4 (Reuters) – Dulux paint maker AkzoNobel is nearing a deal to sell its Southeast Asian decorative paints business to Nippon Paint 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 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)
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Nia Williams)
