Axalta and AkzoNobel target early 2027 merger completion
By Brie CarterKey points
- Axalta Coating Systems (NYSE:AXTA) and AkzoNobel are addressing UK competition concerns over their proposed merger, limited to vehicle refinish coatings.
- The companies plan to divest AkzoNobel's European vehicle refinish coatings business, including its UK operations, under a remedy package already agreed with the European Commission.
- Both companies remain confident of completing the transaction by early 2027, targeting a combined coatings business with approximately US$17 billion in revenue.
Axalta Coating Systems (NYSE:AXTA) and AkzoNobel are working to address UK regulatory concerns over their proposed merger after the Competition and Markets Authority identified competition issues in vehicle refinish coatings.
The UK regulator's concerns relate exclusively to the supply of vehicle refinish coatings, with the companies proposing to divest AkzoNobel's European vehicle refinish coatings business, including its UK operations.
The proposed remedy follows an agreement with the European Commission, and the companies intend to use the same divestment package to address the UK regulator's concerns.
Axalta Coating Systems and AkzoNobel said they remain confident of completing the merger by early 2027, with the combined business expected to generate approximately US$17 billion in revenue.
Shareholders of both companies approved all transaction-related resolutions on August 5, 2026, as the merger progresses through regulatory review in the UK and other jurisdictions.
The proposed combination would bring together two coatings businesses serving automotive, industrial and other markets, with the companies targeting a combined business generating approximately US$17 billion in annual revenue.
