A Comprehensive Nine-Month Record of AkzoNobel’s and Axalta’s Equal Merger

Axalta delivered its most outstanding annual report in company history in 2025: net sales of USD 5.12 billion, net income of USD 384 million, adjusted EBITDA of USD 1.13 billion, and free cash flow of USD 463 million—each metric setting a new all-time high. Its China operations performed especially well, achieving sales of approximately USD 614 million (RMB 4.386 billion) in 2025—a 7.24% year-on-year increase and a new record—primarily driven by robust growth in China’s automobile production and sales, particularly in the new energy vehicle segment. Yet individual excellence cannot mask industry-wide anxiety. In 2025, global demand for coatings remained generally sluggish; U.S. tariff policies intensified macroeconomic volatility; and geopolitical tensions and supply chain disruptions continued to pose risks. Against this backdrop, the global coatings industry’s power structure is becoming increasingly entrenched: Sherwin-Williams ranked first with USD 21.217 billion in sales revenue; PPG second with USD 15.875 billion; AkzoNobel third with USD 11.514 billion; and Axalta fifth with USD 5.276 billion. The top ten companies collectively generated USD 79.101 billion in sales revenue, accounting for 39.30% of the global market share. Squeezed between Sherwin-Williams and PPG, AkzoNobel needed growth from automotive coatings, while Axalta required a solid foundation in decorative coatings. These complementary needs converged in 2025. Nine-Month Roadmap to Completion November 18, 2025: AkzoNobel and Axalta jointly announced they had reached a definitive agreement to integrate via an all-stock, equal merger. Under the terms, each Axalta common share would be exchanged for 0.6539 AkzoNobel shares. Upon completion, AkzoNobel shareholders would hold 55% of the new entity, and Axalta shareholders 45%. The combined company’s enterprise value would be approximately USD 25 billion (RMB 17.77 billion), with projected annual revenue of USD 17 billion (RMB 12.0863 billion), adjusted EBITDA of approximately USD 3.3 billion, and adjusted free cash flow of around USD 1.5 billion. The parties anticipate approximately USD 600 million in pre-tax annual run-rate synergies, with 90% expected to be realized within the first three years following transaction closure. January 28, 2026: An internal Q&A document circulated by AkzoNobel to its employees was disclosed. It identified shareholder voting as the first critical milestone in the merger process. The second—and far more complex and time-consuming—hurdle was the subsequent global antitrust review. The two companies needed regulatory approvals from approximately 30 countries to finalize the deal. April 16, 2026: Nippon Paint Holdings Co., Ltd. (Japan) and Sherwin-Williams (U.S.) jointly submitted their first acquisition proposal to AkzoNobel. April 22, 2026: The AkzoNobel Board rejected this initial overture. April 29, 2026: Nippon Paint and Sherwin-Williams submitted a revised proposal. This revised offer proposed acquiring all issued shares of AkzoNobel at EUR 73.00 per share in cash (approximately USD 85), valuing the company at roughly EUR 12.5 billion (approximately USD 14.555 billion or RMB 9.88 billion).

AkzoNobel and Axalta Merger to Overtake PPG as World’s Largest Industrial Coatings Provider

Dutch-based AkzoNobel, ranked third globally, achieved sales of EUR 10.158 billion (approximately USD 11.514 billion) in 2025—a 5.0% decline year-on-year. Its decorative coatings business generated EUR 4.090 billion in sales, down 5%; its performance coatings division recorded EUR 6.068 billion in sales, also down 5.0%. Breaking it down further: powder coatings revenue fell 6% to EUR 1.280 billion; marine and protective coatings revenue remained flat at EUR 1.570 billion; automotive and specialty coatings revenue declined 6% to EUR 1.347 billion; and industrial coatings revenue dropped 8% to EUR 1.871 billion. Despite revenue pressure, AkzoNobel’s profitability improved—operating profit rose from EUR 917 million to EUR 1.164 billion, and adjusted EBITDA margin increased from 13.8% to 14.2%. U.S.-based Axalta, ranked fourth globally, posted net sales of USD 5.117 billion in 2025—a 3% decline year-on-year. Its performance coatings division generated USD 3.277 billion in sales, down 5.2%, including USD 2.051 billion from automotive refinish coatings (down 5.2%) and USD 1.226 billion from industrial coatings (down 5.1%). Its mobility coatings division achieved USD 1.840 billion in sales, up 1.1%, comprising USD 1.438 billion from light-duty vehicle coatings (up 2.3%) and USD 402 million from commercial vehicle coatings (down 3.1%). Notably, despite declining revenue, Axalta’s adjusted EBITDA reached a record USD 1.128 billion, up 1.1% year-on-year, with margins improving to 22.0%. Axalta CEO Chris Villavarayan stated this represented the highest profitability level in the company’s history. 02 A Landmark Merger: From “Third + Fourth” to “New Champion” On November 18, 2025, AkzoNobel and Axalta announced a definitive agreement to merge on an equal, all-stock basis, creating a global coatings company valued at approximately USD 25 billion. Upon completion, AkzoNobel shareholders will hold 55% of the new company, and Axalta shareholders 45%. The combined entity is projected to generate annual revenue of approximately USD 17 billion, operate 173 manufacturing facilities and 91 R&D centers worldwide, and complete the transaction between late 2026 and early 2027. From an industrial coatings perspective, if the deal closes, the merged entity’s industrial coatings revenue in 2025 would total USD 11.995 billion (USD 6.878 billion + USD 5.117 billion), surpassing PPG’s USD 10.5 billion to become the world’s largest industrial coatings provider. Moreover, across the broader coatings business, AkzoNobel’s (USD 11.514 billion) and Axalta’s (USD 5.117 billion) combined sales already exceed PPG’s USD 15.9 billion. The merged company will thus become the world’s second-largest coatings manufacturer, trailing only Sherwin-Williams. The significance of this merger extends far beyond simple scale aggregation. Greg Poux-Guillaume, CEO of AkzoNobel, described 2025 as a “strategic inflection point.”

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