AkzoNobel and Axalta have moved closer to completing their proposed merger after receiving conditional approval from the European Commission, marking a significant milestone in the creation of one of the world's largest coatings companies.
The all-share merger of equals, first announced as a strategic combination of two leading global coatings manufacturers, remains on track for completion in early 2027, subject to the receipt of the remaining regulatory approvals.
As part of the approval process, the companies agreed to divest AkzoNobel's European vehicle refinish coatings business following discussions with European competition authorities.
According to the companies, the divestment addresses competition concerns identified by the European Commission regarding overlapping operations within the European Economic Area, the United Kingdom and Switzerland. Regulatory reviews conducted in other markets did not identify any significant competition concerns related to the transaction.
The proposed divestment is designed to preserve customer choice and maintain healthy competition within the European vehicle refinish coatings sector while allowing the broader transaction to proceed.
Once finalised, the merged company is expected to generate annual revenues of approximately US$17 billion and will operate across a diverse range of coatings segments. These include vehicle refinish coatings, powder coatings, aerospace coatings, mobility coatings, marine and protective coatings, industrial coatings and decorative paints.
Greg Poux-Guillaume, Chief Executive Officer of AkzoNobel and the designated Chief Executive Officer of the combined organisation, described the European Commission's decision as an important step towards completing the transaction.
'The European Commission's approval represents another important milestone in our merger process with Axalta. We remain on track to complete the transaction and look forward to bringing together our complementary technologies, expertise and talented teams to accelerate growth and create additional value for customers around the world,' said Poux-Guillaume.
Chris Villavarayan, President and Chief Executive Officer of Axalta, who is expected to take on the role of Deputy CEO of the merged company, welcomed the regulatory approval and reaffirmed the strategic rationale behind the transaction.
'We are pleased to have received approval from the European Commission. By combining our strengths, we will be better positioned to support customers globally, increase investment in innovation and establish a coatings leader with the scale, resources and capabilities required for long-term success,' said Villavarayan.
The merger will create a major global player in the coatings industry, bringing together extensive manufacturing capabilities, technological expertise and a broad portfolio of products and brands serving automotive, industrial and decorative coatings markets.
Both companies believe the transaction will strengthen their ability to drive innovation, improve operational efficiencies and deliver enhanced value to customers while maintaining a strong global market presence.
• For background on the proposed new identity of the combined business, read our previous article:
Merger
