Why did AkzoNobel reject Nippon Paint's bid for its Decorative Paints business?

AkzoNobel rejected multiple conditional, non-binding proposals from Nippon Paint because it determined the indicative enterprise valuation of €7.5 billion ($8.8 billion) 'undervalues the unit'. The company explicitly stated this assessment as the core reason for rejection, without citing additional financial, strategic, or operational grounds beyond the perceived insufficient valuation.

What alternative transaction is AkzoNobel pursuing instead of selling its Decorative Paints business to Nippon Paint?

Instead of accepting Nippon Paint's bid, AkzoNobel's boards continue to recommend an 'all-stock merger of equals' with Axalta Coating Systems Ltd, emphasizing that this transaction has a 'compelling strategic rationale'. The news confirms this position remains unchanged and is the company's preferred path forward following the rejection of Nippon Paint's proposals.

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AkzoNobel Rejects Nippon Paint Bid for Decorative Paints Business

Jul 14, 2026

AkzoNobel rejected Nippon Paint's €7.5 billion offer for its Decorative Paints unit, citing undervaluation, while continuing to pursue a merger with Axalta Coating Systems.

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