AkzoNobel and Axalta's $25 Billion Merger May Require Divestitures

en.Wedoany.com Reported - On October 8, the $25 billion merger between Dutch coatings manufacturer AkzoNobel and U.S.-based Axalta made new progress in regulatory review. The two parties are considering selling AkzoNobel's automotive refinish coatings business to address competition concerns raised by the European Commission. The two companies are expected to formally submit remedy proposals next week. The transaction is currently still in the first phase of EU antitrust review and has not yet received final approval.

On October 7, representatives of the two companies held a meeting with the European Commission to discuss the merger transaction and possible competition remedies. Previous concerns raised by regulators regarding overlap in the powder coatings business have been resolved, and the automotive refinish coatings business has become the main issue still requiring attention. The European Commission had originally planned to complete its preliminary review on October 22. If the companies formally submit remedy proposals, the review period will be extended by 10 working days.

The assets proposed for divestiture belong to AkzoNobel's automotive refinish coatings business and involve brands such as Sikkens, Lesonal, Dynacoat, and Wanda. The products mainly serve the automotive collision repair, commercial vehicle refurbishment, and automotive aftermarket coating markets. The valuation of the assets to be sold, potential buyers, specific scope of plants, and timing for completion of the transaction have not yet been announced.

AkzoNobel and Axalta announced an all-stock merger of equals on November 18, 2025. The combined company is expected to have annual revenue of approximately $17 billion, an enterprise value of approximately $25 billion, and identified annual recurring cost synergies of approximately $600 million. Under the transaction arrangements, AkzoNobel shareholders will hold approximately 55% of the shares after the merger, while Axalta shareholders will hold approximately 45%.

The combined company plans to integrate businesses including automotive refinish coatings, industrial coatings, powder coatings, aerospace coatings, and marine and protective coatings, and after completing a transitional dual-listing period, will list its shares solely on the New York Stock Exchange. The two parties had previously expected to complete the transaction between late 2026 and early 2027, with final closing still subject to regulatory approvals and other agreed conditions.