EU Clears $25B Akzo-Axalta Merger with One Big Condition
The European Commission granted conditional approval Nov. 6 to the proposed all-stock merger of AkzoNobel and Axalta Coating Systems. The approval requires AkzoNobel to sell its European vehicle refinish coatings business, the companies said in a joint statement.
The Commission raised concerns that the combined company’s market power in vehicle refinish coatings could lead to higher prices or lower quality for repair shops and consumers. The companies must find a buyer that supplies coatings or operates in a related industrial sector, according to Reuters’ reporting on the Commission’s decision.
“Receiving the European Commission’s approval is an important milestone as we move closer to completing our merger with Axalta,” AkzoNobel CEO Greg Poux-Guillaume said in the joint statement. He is slated to lead the combined company, which would be named Axanzo.
The companies expect the deal to close in early 2027, subject to remaining regulatory approvals. The U.K. Competition and Markets Authority lists Nov. 11 as the deadline for its initial decision. Separately, Axalta disclosed plans Oct. 20 to sell its North American Building Products business to address regulatory requirements, according to its SEC filing.
The required sale would change ownership of a coatings supplier serving European collision repair shops and refinish distributors. Follow developments in PCI’s Industrial Coatings coverage.
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