BY Fraser Tennant
In an all-stock merger of equals that will create a premier global coatings company, AkzoNobel and Axalta Coating Systems are to combine with an enterprise value of approximately $25bn.
Under the terms of the definitive agreement, which has been unanimously approved by the AkzoNobel supervisory board, the AkzoNobel board of management and the Axalta board of directors, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned.
The combination brings together two industry leaders with complementary portfolios of highly regarded brands to better serve customers across key end markets and enhance value for shareholders, employees and other stakeholders.
Anchored in both companies’ proud histories and broad expertise, the combined business will have a highly attractive financial profile, industry-leading innovation capabilities and a balanced global footprint spanning over 160 countries to bring global capabilities to local customers.
“We are excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry,” said Greg Poux-Guillaume, chief executive and chairman of the board of management of AkzoNobel. “This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential.”
With attractive margins and robust cash flow generation, the combined company is expected to drive identified and actionable run-rate synergies of approximately $600m – 90 percent of which are expected to be achieved within the first three years following the close of the transaction.
“We are pleased to enter into this transaction with AkzoNobel and join our best-in-class platforms to enhance innovation, develop new capabilities and further strengthen customer relationships,” said Chris Villavarayan, chief executive and president of Axalta. “As our industry continues to grow and evolve, this combination with AkzoNobel enables us to do the same, with a sharper competitive edge and new avenues and opportunities for growth.”
The transaction is expected to close in late 2026 to early 2027, subject to approval by shareholders, the receipt of requisite regulatory approvals and other customary closing conditions.
“Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry,” stated Mr Villavarayan. “Like AkzoNobel, we value our people as our greatest asset, and we are excited to unite our rich, innovation-focused cultures.”
News: AkzoNobel, Axalta to merge creating $25 billion paint giant