AkzoNobel and Axalta Coating Systems have received conditional European Commission approval for their proposed all-stock merger of equals, after agreeing to divest AkzoNobel’s European vehicle refinish business.
The companies expect the transaction to close in early 2027, subject to outstanding regulatory approvals.
The proposed combination would create a global coatings group with approximately $17 billion in revenue.
The divestment is intended to address competition concerns arising from overlaps between the companies’ vehicle refinish activities in the European Economic Area, UK and Switzerland.
According to the companies, the commitments fully address the Commission’s preliminary concerns, with no other competition issues identified in other markets.
Wider strategic benefits
They said the remedy would preserve competition and customer choice in Europe’s vehicle refinish coatings market while retaining the merger’s wider strategic benefits.
The combined portfolio would cover powder, aerospace, refinish, mobility, marine and protective, industrial and decorative coatings, bringing together the companies’ technologies and brands.
“Receiving the European Commission’s approval is an important milestone as we move closer to completing our merger with Axalta,” said Greg Poux-Guillaume, AkzoNobel chief executive, who will lead the combined company.
Chris Villavarayan, Axalta chief executive and president, will become deputy chief executive.
He said the combination would enable the companies to ‘accelerate investment in differentiated technologies’ and better serve customers worldwide.
Both executives highlighted growth and technology investment as priorities for the proposed group, while completion remains dependent on the remaining regulatory process.
