European Commission Conditionally Approves AkzoNobel–Axalta Merger of Equals

Akzo Nobel N.V. and Axalta Coating Systems Ltd. have received conditional approval from the European Commission for their proposed all-stock merger of equals, which would create a leading global coatings company. The transaction is expected to close in early 2027, subject to the remaining regulatory approvals.

Following discussions with the European Commission, AkzoNobel and Axalta have agreed to a targeted remedy that involves divesting AkzoNobel’s European vehicle refinish business.

The commitments address the European Commission’s preliminary competition concerns by removing the companies’ overlapping activities in the European Economic Area, the UK and Switzerland. The Commission identified no other competition concerns in any other markets. The remedy is intended to preserve competition and customer choice in Europe’s vehicle refinish coatings market while retaining the merger’s broader strategic benefits.

The merger will bring together two leading coatings companies with complementary portfolios, technologies and brands. The combined company is expected to generate approximately $17 billion in revenue and offer products across powder, aerospace, refinish, mobility, marine and protective, industrial, and decorative coatings.

“Receiving the European Commission’s approval is an important milestone as we move closer to completing our merger with Axalta,” says Greg Poux-Guillaume, CEO of AkzoNobel, who will serve as CEO of the combined company. “We’re well on track and look forward to bringing together our complementary technologies, expertise and talented teams to accelerate growth.”

Chris Villavarayan, Axalta CEO and President, who will serve as Deputy CEO of the combined company, adds: “We are pleased that the European Commission has approved the transaction. Together we will be better positioned to serve our customers around the world, accelerate investment in differentiated technologies, and create a global leader in coatings with scale, innovation and capabilities to shape the future of our industry.”

Source: AkzoNobel