AkzoNobel announced on Monday that it has agreed to sell its Southeast Asia decorative paints business to Nippon Paint for $1.35 billion, completing its review of the Asian decorative paints portfolio.

The Dutch coatings giant stated that the sale covers decorative paints operations in Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia. The company expects to receive approximately $1 billion in net cash proceeds after deducting taxes and payments to minority shareholders.

The Dulux paint maker had earlier divested its decorative coatings businesses in India and Pakistan for $1.6 billion and 50 million euros, respectively.

AkzoNobel CEO Greg Poux-Guillaume said in a statement: "The successful completion of the Asian portfolio review is part of our ongoing strategy to focus our portfolio on areas where we can achieve differentiated scale and strengthen our position."

The Indonesia transaction is expected to close separately by late 2026, while the remaining deals are anticipated to complete around mid-2027.

AkzoNobel said it will now focus on successfully completing its merger with U.S. coatings manufacturer Axalta, which was announced last November.

The Dutch company revealed in July that Nippon Paint had made multiple proposals to acquire its decorative paints business, with a proposed valuation of approximately 7.5 billion euros ($8.44 billion).

Prior to that, Nippon Paint had teamed up with U.S. coatings manufacturer Sherwin-Williams in June to offer 12.5 billion euros for AkzoNobel's entire business, but subsequently withdrew that offer.