AkzoNobel sells Pakistan business to Packages Group for €50 million, continuing global restructuring and focusing on core markets and growth opportunities.
AkzoNobel has entered into an agreement to divest its Pakistan operations in a deal valued at roughly €50 million, signaling another step in its broader strategic restructuring. The Dutch multinational, AkzoNobel N.V., confirmed that it will sell its subsidiary, Akzo Nobel Pakistan Limited, to IGI Investments (Pvt.) Limited, which operates under the umbrella of the Packages Group—one of Pakistan’s most diversified and established business groups.
The agreed transaction carries a total enterprise value of approximately 16.2 billion Pakistani rupees, equivalent to about €50 million. This valuation reflects a multiple of 14 times EBITDA, indicating a relatively strong pricing benchmark for the business. Akzo Nobel Pakistan Limited primarily focuses on decorative paints, a segment that has shown steady demand in the region. While ownership of the coatings business will transfer to the Packages Group, certain future coatings-related activities will remain linked to AkzoNobel through royalty arrangements, ensuring continued technical or brand-related collaboration.
This divestment aligns with AkzoNobel’s ongoing effort to streamline its global portfolio. The company has been actively reassessing its geographic footprint and business mix, with the aim of concentrating resources on markets and segments where it holds leading or high-growth positions. By exiting non-core or less strategic markets, the company seeks to enhance operational efficiency and allocate capital more effectively toward priority areas.
Commenting on the deal, CEO Greg Poux-Guillaume emphasized that the sale is consistent with the company’s long-term strategy. He noted that AkzoNobel has built a strong presence and capable team in Pakistan over the years, and expressed confidence that the new owners are well-equipped to drive the business forward. According to him, the transition is expected to unlock additional value and growth potential under local ownership.
From the buyer’s perspective, the acquisition represents an opportunity to expand within Pakistan’s paints and coatings sector. Syed Hyder Ali, Chairman of IGI Investments, highlighted the strong legacy and skilled workforce of Akzo Nobel Pakistan Limited. He stated that the Packages Group intends to invest further in the business, support its employees, and strengthen its competitive position in the domestic market. The group also aims to create sustained value for stakeholders while leveraging its existing industrial and commercial expertise.
The transaction is currently subject to standard regulatory approvals and closing conditions. If everything proceeds as planned, completion is expected in the second half of 2026. This move follows closely on the heels of AkzoNobel’s earlier divestment of its Indian operations, which was finalized in December 2025, reinforcing the company’s broader strategy of portfolio optimization.
