Nippon Paint has launched a renewed effort to expand its global footprint by offering €7.5 billion ($8.55 billion) to acquire AkzoNobel’s decorative paints business, reopening takeover discussions just months after an earlier proposal for the entire Dutch coatings company was rejected.
The Japanese paint manufacturer disclosed the latest approach on Monday, confirming reports that it had submitted an offer focused solely on AkzoNobel’s decorative paints division rather than the entire company. Nippon Paint emphasized that no final decisions regarding a potential acquisition have been reached.
The latest proposal marks a strategic shift following the collapse of an earlier attempt to acquire all of AkzoNobel. In May, Nippon Paint joined forces with U.S.-based Sherwin-Williams in a €12.5 billion bid for the entire Dutch company, but AkzoNobel’s board rejected the offer, arguing that it significantly undervalued the business and failed to provide sufficient certainty regarding regulatory approvals.
Following that rejection, both companies withdrew their proposal, appearing to end takeover discussions. However, Nippon Paint has now returned with a narrower bid that targets one of AkzoNobel’s most recognizable businesses while leaving the remainder of the company intact.
AkzoNobel, the manufacturer of the globally recognized Dulux paint brand, did not immediately respond to requests for comment outside normal business hours.
The renewed approach was first reported by Bloomberg News, which cited people familiar with the matter as saying Nippon Paint had submitted multiple proposals over the past month. According to the report, AkzoNobel neither informed shareholders about those approaches nor entered substantive discussions over the €7.5 billion proposal submitted last week.
Neither company has publicly confirmed details of any negotiations beyond Nippon Paint’s acknowledgment that discussions remain at a preliminary stage.
The proposed acquisition comes at a pivotal moment for AkzoNobel as the company advances plans for a separate strategic transaction. Rather than pursuing a sale of its decorative paints operations, the Dutch coatings producer continues to focus on its previously announced merger with U.S.-based coatings manufacturer Axalta.
Both AkzoNobel and Axalta are scheduled to hold shareholder meetings on Aug. 5, when investors will vote on the proposed merger. The transaction represents a key element of AkzoNobel’s long-term strategy to strengthen its position in the highly competitive global coatings industry.
During its rejection of the earlier consortium bid, AkzoNobel argued that the proposal presented significant execution risks because it envisioned splitting the company between two separate buyers. The company also questioned whether regulators would approve such a complex transaction within a reasonable timeframe.
By concentrating exclusively on the decorative paints business, Nippon Paint’s latest offer may simplify some of those concerns. Even so, any transaction would still face careful scrutiny from competition authorities given the significant market positions held by both companies across multiple regions.
The decorative paints division represents one of AkzoNobel’s most valuable assets, producing paints and coatings for residential and commercial construction under brands that include Dulux, one of the world’s best-known consumer paint labels.
For Nippon Paint, acquiring the business would significantly strengthen its presence in Europe while expanding its portfolio of premium decorative coatings. The company has steadily pursued international expansion through acquisitions in recent years as it seeks greater scale in a consolidating global market.
The renewed bid also reflects broader consolidation trends across the global paints and coatings industry, where manufacturers are pursuing mergers and acquisitions to offset rising operating costs, strengthen pricing power, and improve efficiency.
Paint producers continue to face mounting pressure from higher raw material costs, persistent inflation, and intense competition across both consumer and industrial markets. At the same time, uncertainty surrounding U.S. President Donald Trump’s tariff policies on imported goods has complicated global supply chains and increased costs for manufacturers operating across multiple jurisdictions.
Those challenges have accelerated efforts by major coatings companies to seek larger operating platforms capable of generating cost savings through expanded production networks, procurement efficiencies, and broader geographic diversification.
Industry analysts have noted that scale has become increasingly important as companies navigate volatile commodity prices and shifting international trade policies. Larger manufacturers are generally better positioned to absorb fluctuations in input costs while maintaining competitive pricing across global markets.
Nippon Paint’s renewed pursuit of AkzoNobel’s decorative paints business highlights the continued appetite among major industry players for strategic acquisitions despite broader economic uncertainty.
Whether the latest proposal gains traction may ultimately depend on AkzoNobel’s willingness to reconsider its strategic priorities while simultaneously pursuing the planned merger with Axalta. With shareholder votes on that transaction scheduled in the coming weeks, the Dutch company faces an increasingly consequential period as competing visions emerge for its future.
For now, Nippon Paint has confirmed only that its proposal remains under consideration and that no definitive agreement has been reached. As takeover speculation continues, investors will closely watch whether AkzoNobel remains committed to its merger strategy or becomes more receptive to alternative offers for parts of its business amid ongoing consolidation across the global coatings sector.
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