AkzoNobel and Axalta merger - new global coatings company
AkzoNobel and Axalta plan to combine in a share-based merger to create a new global coatings company with sales of around 17 billion dollars. The planned merger would create a leading supplier of paints and coatings with an enterprise value of 25 billion US dollars.
AkzoNobel and Axalta intend to merge on the basis of a share swap to form a leading global coatings supplier. The combined group will have an enterprise value of approximately 25 billion dollars and combined annual sales of approximately 17 billion dollars. Both companies bring complementary portfolios ranging from industrial coatings, powder and marine coatings to automotive and refinish solutions, enabling a particularly broad market coverage. With a presence in more than 160 countries, a global network will be created to serve regional customers more directly and provide a strong foundation for further growth.
AkzoNobel and Axalta merger unlocks synergies
The companies emphasize that the combination will significantly increase their innovative strength. Together they have almost one hundred research sites, several thousand specialists in development and application technology and a large number of patents. The merger is intended to bring technological expertise closer together in order to bring coating solutions to market faster. The merger is also expected to generate considerable synergies. Potential savings in the high three-digit million range are expected, most of which should be realized in the first few years after completion. This potential will result from standardized processes, a bundled procurement strategy, optimized infrastructure and more efficient supply chains.
New coatings company with two main locations
The new group will be led by AkzoNobel CEO Greg Poux-Guillaume. Chris Villavarayan, currently CEO of Axalta, will assume the role of Deputy CEO. The future board will follow a one-tier model and will be chaired by Rakesh Sachdev, who currently chairs the Axalta board. The new company will have its tax domicile in the Netherlands and operate from two main locations in Amsterdam and Philadelphia. Following a transition period, the shares will be traded exclusively on the New York Stock Exchange. The transaction is expected to be completed by the end of 2026 or early 2027 and is subject to shareholder approval, clearance by the relevant antitrust authorities and other customary conditions. Initial merger talks between AkzoNobel and Axalta had already taken place in 2017.
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