• PCI editorial staff outline key takeaways from the AkzoNobel and Axalta merger of equals and what it means for global coatings leaders.

• The analysis compares the combined company’s scale and footprint with Sherwin-Williams PPG and other top multinationals.

• The article places the deal in context with past transactions including Sherwin-Williams’ acquisition of Valspar and PPG’s attempted bid for AkzoNobel.

• Additionally, PCI Chief Editor reviewed the first week of reactions here. 

• Two more stories about investor reactions can be found here:

  • Cevian Capital Reportedly Backs the AkzoNobel–Axalta Merger
  • Shapiro Capital Questions Akzo-Axalta Merger Terms

AkzoNobel and Axalta’s announcement of a merger of equals is one of the most consequential consolidation moves our industry has seen in years. Beyond the financial headlines, the deal sets the stage for a fundamental reshaping of the global coatings landscape. Here are some of the key takeaways: 

"A Premier Global Coatings Company Emerges"

The label represents a direct quote from the joint press release. The combined enterprise will generate roughly $17 billion in annual revenue with an overall valuation of about $25 billion. Only a handful of players operate at this scale, and this move immediately shifts competitive balance at the top. In PCI's 2025 Global Top 10 Rankings, AkzoNobel finished at #3 with $11.6 billion in coatings sales and Axalta came in at #6 with $5.3 billion. With the estimated combined revenue, this would push the new company up between longstanding #1 Sherwin-Williams and #2 PPG at the time of reporting. 

An Unprecedented Span of Technologies and Markets

This merger brings together complementary strengths across powder, refinish, mobility, industrial, marine and protective, aerospace and decorative paint and coatings. Few companies have ever covered this much of the coatings value chain under one umbrella.

Major Implications for Refinish and Mobility

Axalta’s portfolio is already heavily weighted toward finishing markets. In 2024, the company reported about $5.3 billion in net sales, including approximately $2.16 billion in refinish coatings and $1.29 billion in industrial coatings within its Performance Coatings segment, plus $1.82 billion across light vehicle and commercial vehicle OEM mobility coatings. AkzoNobel’s Performance Coatings business, which spans automotive, powder, marine and protective, coil and other industrial applications, generated roughly €6.4 billion in third-party revenue in 2024.

Taken together, these finishing-intensive businesses represent a revenue base in the low-teens billions of dollars. For context, Sherwin-Williams’ Performance Coatings Group reported about $6.8 billion in 2024 net sales, while PPG’s Performance Coatings and Industrial Coatings segments reported approximately $5.2 billion and $6.7 billion, respectively. On a finishing-segment basis, the combined Akzo–Axalta platform therefore sits alongside these leaders in overall scale, with particular weight in refinish, mobility and powder.

From a portfolio standpoint, Axalta’s leadership in refinish and transportation coatings pairs with AkzoNobel’s strong positions in powder, marine and protective, coil and decorative paint and coatings. That combination concentrates a broad spectrum of finishing chemistries and application technologies under one supplier across automotive, industrial and infrastructure markets.

Synergies Signal Significant Restructuring Ahead

The companies project approximately $600 million in identified synergies, with most expected in the first three years. That level of integration typically includes manufacturing and footprint optimization, procurement alignment and shared technology platforms.

R&D Scale Becomes a Defining Advantage

A combined annual R&D investment of about $400 million and 91 global research facilities means enhanced capabilities in sustainability, low-VOC technologies, powder advancement and next-generation resin and film technologies.

A Much Larger Global Footprint

With more than 160 countries in its reach and 173 manufacturing sites, the new organization will have deepened access to regional markets and expanded distribution and service capabilities. By comparison, Sherwin-Williams has more than 130 manufacturing facilities and operations in over 120 countries, while PPG operates in more than 70 countries with over 150 manufacturing locations placing the combined AkzoNobel–Axalta group in the same tier of global reach.

Balanced Leadership to Guide Integration

The structure reflects a true merger of equals. AkzoNobel’s Greg Poux-Guillaume will serve as CEO, Axalta’s Chris Villavarayan as Deputy CEO and Axalta’s Rakesh Sachdev as Chair. This balance suggests a coordinated approach to integration.

A Dual-Headquarters Model

The combined company will be headquartered in both Amsterdam and Philadelphia, with a single NYSE listing planned post-transition. This reflects both companies’ global identities and operational footprints.

A Long Road Ahead

The companies expect the merger to close in late 2026 or early 2027, which may feel like a long runway. But given the size of the combined organization and the number of markets it touches, an extended timeline is realistic. The coatings industry has several examples of how complex major combinations can be:

PPG’s Attempted Acquisition of AkzoNobel (2017)

One of the most public cases was PPG’s unsolicited bid to acquire AkzoNobel in 2017. The proposed deal faced strong resistance from AkzoNobel’s board, scrutiny from Dutch authorities and concerns about the merger’s impact on local jobs and competition. PPG ultimately withdrew the offer after three attempts. What it shows: Large, cross-border transactions involving major coatings players can face intense stakeholder, political and regulatory pressure.

Sherwin-Williams’ Acquisition of Valspar (2017)

Sherwin-Williams closed its acquisition of Valspar for $11.3 billion, but only after regulators required divestitures, including the sale of Valspar’s wood coatings business to Axalta. What it shows: Even when a deal is approved, antitrust remedies can delay closing and reshape the final structure.

Axalta’s Previously Failed Merger Discussions (2017–2019)

Axalta has been in the middle of several attempted transactions over the past decade, including merger talks with Nippon Paint and a separate set of discussions with AkzoNobel. None of those deals reached completion due to valuation differences or strategic misalignment. What it shows: Aligning leadership, valuation expectations and post-merger strategy in a large coatings combination is challenging even before regulators get involved.

As details continue to unfold, this merger of equals stands to reshape parts of the industry. It is a pivotal moment that will influence every segment of the paint and coatings industry from OEMs and formulators to distributors and end users.