Nippon Paint offers €7.5bn for AkzoNobel decorative paints unit
Japan’s Nippon Paint Holdings has offered €7.5bn to acquire Dutch rival AkzoNobel’s decorative coatings business. Nippon Paint confirmed the offer in a news release today, though the company cautioned that ‘no specific matters regarding such acquisition have been decided at this time’.
The move marks Nippon’s latest attempt to scupper a proposed all-share merger between the Dutch company and US rival Axalta Coating Systems.
In May 2026, AkzoNobel rejected a conditional and non-binding proposal from Nippon Paint Holdings Co. and US-based The Sherwin-Williams Company to acquire the entire company for €12.5 billion. In June 2026, Nippon Paint Holdings and Sherwin-Williams issued a joint statement confirming they were no longer pursuing the €13bn takeover bid for AkzoNobel.
AkzoNobel responds to fresh Nippon bid
Today (13 July), AkzoNobel has confirmed receiving offers from Nippon Paints for its decorative paints business.
In a company statement, AkzoNobel says its board ‘continues to unanimously recommend the merger of equals between AkzoNobel and Axalta’. It states the Nippon Paint proposal ‘significantly undervalues AkzoNobel’s Decorative Paints business, as previously communicated to Nippon Paint’.
Nippon Paint’s offers are conditional and non-binding, AkzoNobel said, adding that its merger agreement with Axalta restricts it from any engagement with Nippon Paint.
According to reports, AkzoNobel and Axalta are set to hold shareholder meetings to vote on the Axalta tie-up on 5 August.
AlzoNobel merger rationale
This recent corporate maneuvering comes at a time when global paint and coatings manufacturers are facing severe headwinds.
The move towards large-scale consolidation is being heavily driven by rising operational costs and market volatility. Crucially, uncertainty sparked by trade tariffs on imported goods and raw materials has compressed margins across the sector.
By pooling resources and streamlining supply chains through mergers, industry heavyweights are looking to mitigate these fluctuating overheads and build more resilient portfolios to withstand a broader consumer downturn.
