The European Commission has conditionally approved the all-stock merger between Amsterdam-based AkzoNobel and Philadelphia-headquartered Axalta Coating Systems, marking a major regulatory milestone for a deal that would create a major global coatings player.
After discussions with the European Commission, AkzoNobel and Axalta have agreed to a targeted remedy involving the divestment of AkzoNobel’s European vehicle refinish business. The transaction is expected to close in early 2027, subject to regulatory approvals, officials said.
“We are pleased that the European Commission has approved the transaction,” Chris Villavarayan, Axalta CEO and President, who will serve as Deputy CEO of the combined company, said. “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.”
The commitments offered will address the preliminary competition concerns identified by the European Commission, removing horizontal overlap between the companies’ activities in the European Economic Area, UK and Switzerland. No other competition issues were identified in any other markets. This outcome will preserve the same level of competition and customers choice in the European vehicle refinish coatings market, officials said. The merger will combine two leading coatings companies with complementary portfolios, technologies and brands to create a global coatings company with an estimated $17 billion in revenue and a broad portfolio across power coatings, aerospace coating, refinish, mobility, marine and protective coatings, industrial coatings and decorative coatings, the companies said.
“Receiving the European Commission’s approval is an important milestone as we move closer to completing our merger with Axalta,” Greg Poux-Guillaume, CEO of AkzoNobel, who will serve as CEO of the combined company, said. “We’re well on track and look forward to bringing together our complementary technologies, expertise and talented teams to accelerate growth.”
Axalta is a global leader in the coatings industry with more than 150 years of experience in the coatings industry. The company serves more than 100,000 customers in over 140 countries.