Nippon Paint Offers €7.5 Billion ($8.6 Billion) for Akzo Nobel’s Paint Business; Bid Rejected

Nippon Paint’s fresh €7.5 billion bid for Akzo Nobel’s paints unit has hit a wall. Akzo Nobel’s board rejected the offer on Monday, July 13, 2026. The Japanese company’s bid, worth about $8.6 billion, targets Akzo Nobel’s decorative paints business. Akzo Nobel said the proposal “significantly undervalues” the unit. 

The Dutch paintmaker continues to back its planned merger with Axalta Coating Systems instead. Nippon Paint shares fell around 2.5% in Tokyo trading on the news. Akzo Nobel shares, by contrast, rose 1.2% to €58.06 in Amsterdam.

Nippon Paint’s Renewed Push for Akzo Nobel

Nippon Paint (TYO: 4612) submitted its latest €7.5 billion proposal for Akzo Nobel’s paints unit last week. That follows an initial approach made three weeks earlier, according to people familiar with the matter. Akzo Nobel’s management did not engage with the offer or inform shareholders about it. Bloomberg News first reported the approach on Sunday, before Nippon Paint confirmed it Monday.

Nippon Paint Makes $8.6 Billion Bid for AkzoNobel’s Decorative-Paints Unit https://t.co/3wHnKPFC3N

— WSJ Business News (@WSJbusiness) July 13, 2026

Key details of Nippon Paint’s proposal:

• The offer values Akzo Nobel’s decorative paints business at €7.5 billion.
• In dollar terms, the bid works out to roughly $8.55 billion to $8.6 billion.
• The proposal values the unit at about 12 times its 2026 EBITDA.
• Nippon Paint called the offer conditional, non-binding, and still undecided.

Why Akzo Nobel Rejected the Offer

Akzo Nobel said Nippon Paint’s proposal significantly undervalues its decorative paints business. Its merger agreement with Axalta also restricts engagement with rival bidders like Nippon Paint. The company reaffirmed its board’s unanimous support for the Axalta transaction. Jefferies noted the offer only modestly exceeds the unit’s standalone value estimate.

A Deal That Would Reunify the Dulux Brand

A successful bid would reunite the Dulux brand under one global owner. Akzo Nobel’s decorative paints unit draws almost two-thirds of its revenue from Europe. Winning the unit would also strengthen Nippon Paint’s presence across the continent. Nippon Paint is not expected to bid for smaller regional units alone.

Nippon Paint’s stock reaction on July 13:

• Nippon Paint shares fell around 2.5% Monday afternoon in Tokyo.
• The stock traded near 1,050 yen per share during the session.
• Shares had dropped as much as 3.4% intraday at one point.
• That marked Nippon Paint’s steepest intraday decline in more than a month.

A History of Rejected Bids This Year

This is Nippon Paint’s second rejected approach for Akzo Nobel assets in 2026. In April, Nippon Paint and Sherwin-Williams jointly offered €12.5 billion for the entire company. That all-cash bid valued Akzo Nobel at €73 per share, a 39% premium.

The Earlier €12.5 Billion Bid and Its Fallout

Akzo Nobel rejected the joint €12.5 billion offer from Nippon Paint and Sherwin-Williams on May 1, 2026. Akzo Nobel shares still jumped as much as 22% once the rejection became public. By early June, both companies had abandoned their pursuit entirely.

The stock’s dramatic swings this year:

• Akzo Nobel shares surged 22% in late May, the most on record at the time.
• Shares then plunged 22% again in early June once the bid was withdrawn.
• That single-day drop was also the largest one-day fall on record.
• Akzo Nobel traded at €53.76 per share immediately after the pursuit ended.

The Axalta Merger Akzo Nobel Still Favors

Akzo Nobel’s planned merger with Axalta Coating Systems would create a company valued near $25 billion. Akzo Nobel shareholders would hold 55% of the combined business going forward. The deal would also shift Akzo Nobel’s stock listing from Amsterdam to New York. CEO Greg Poux-Guillaume is expected to lead the combined group.

Merger details and remaining hurdles:

• Shareholders of both Akzo Nobel and Axalta will vote on August 5, 2026.
• The merger is projected to generate $600 million in annual cost savings.
• US regulators have requested more information before granting FTC approval.
• Rising costs and Trump-era tariffs are pushing paint makers toward consolidation.

Rivals Watching Closely

Nippon Paint previously derailed Axalta and Akzo Nobel merger talks back in 2017. It later failed to reach its own agreement to buy Axalta outright. Akzo Nobel also rebuffed a $29 billion buyout offer from PPG Industries that same year. The paint industry’s consolidation battle has clearly stretched across three decades.

Final Thoughts

Nippon Paint’s renewed €7.5 billion bid shows persistent interest in Akzo Nobel’s paints unit. Akzo Nobel’s board, however, remains firmly committed to its Axalta Coating Systems merger. This marks the second time this year Akzo Nobel has turned down Nippon Paint. The August 5 shareholder vote will determine whether the Axalta deal proceeds. For now, Nippon Paint’s pursuit of the Dulux brand remains unresolved.

Disclaimer:

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