The $25 billion merger enters a critical regulatory window: AkzoNobel and Axalta plan to divest Axalta’s vehicle refinish business.

Huizheng Information reports that AkzoNobel and Axalta plan to sell Axalta’s Vehicle Refinish business to secure conditional approval from the European Commission for their $25 billion merger. The two parties met with the European Commission on October 7 to discuss remedial measures and plan to formally submit their proposal next week. This submission will extend the original decision deadline of October 22 by approximately 10 working days. From a transaction background perspective, the two companies announced their merger plan in November 2025, with a total deal value of $25 billion. The merger will be executed as an all-stock, “equal” merger to form a global coatings enterprise. Upon completion, former AkzoNobel shareholders will hold 55% of the new company’s shares, while former Axalta shareholders will hold 45%, and will also receive a special cash dividend of $2.5 billion. The new company plans to establish dual headquarters in Amsterdam, Netherlands, and Philadelphia, USA. It is expected to generate annual revenue of approximately $17 billion and adjusted EBITDA of around $3.3 billion, with the parties estimating annual cost savings of about $600 million. The merger has already received overwhelming shareholder approval on August 5, 2026: 98.87% of AkzoNobel’s shareholders voted in favor, and 99% of Axalta’s shareholders approved the deal. Axalta primarily operates in automotive OEM coatings, vehicle refinish coatings, and industrial coatings, with a strong presence in the U.S. market; AkzoNobel, meanwhile, possesses a production and sales network covering Europe and other international markets. Both parties aim to reduce operational costs and respond to pressures arising from raw material price volatility, trade policy changes, and intensifying industry competition. The European Commission has registered this merger case as M.12269 – AKZONOBEL / AXALTA and received the formal notification on September 17, 2026. If the transaction ultimately receives conditional approval, the merged entity will cover the full spectrum of decorative coatings, industrial coatings, automotive OEM coatings, and vehicle refinish coatings—becoming a globally leading, end-to-end solutions platform in the coatings industry, thereby reshaping the global competitive landscape.

Two coating giants merge— who will be left out of the next round of competition?

Editor’s Note: On August 5, the merger plan between AkzoNobel and Axalta was overwhelmingly approved at both companies’ special general meetings. If subsequent regulatory approvals and other closing conditions are successfully fulfilled, the parties expect to complete the merger by late 2026 or early 2027. At that point, AkzoNobel shareholders will hold approximately 55% of the merged company’s shares, and Axalta shareholders will hold approximately 45%. According to data from Coatings World’s 2026 Industry Report, AkzoNobel’s coatings business generated $12 billion in sales in 2025, while Axalta achieved $5.1 billion in同期 sales. Once completed, the merged group’s annual sales will exceed $17 billion—surpassing long-standing industry leader PPG and firmly securing second place globally in the coatings industry. Thus, the 2026 global top-five coatings companies are now re-ranked as follows: Rank Coatings Company Annual Sales (USD) 1 Sherwin-Williams ~$18 billion 2 AkzoNobel + Axalta (merged) $17 billion 3 PPG $15.9 billion 4 Nippon Paint $11.8 billion 5 BASF ~$5 billion The newly merged AkzoNobel + Axalta group will command a globally integrated business footprint, world-class R&D capabilities, and a diversified product portfolio—fundamentally disrupting the previous fragmented, loosely tiered competitive landscape of the global coatings market, where multiple players held comparable strength without clear hierarchical differentiation. Looking further ahead, this merger may signal that the global coatings industry is entering a new consolidation cycle. MantaRay, a specialist in the chemical industry, invites you to follow us for more chemical industry insights. Original article title: "Major Restructuring in the Coatings Industry: Entering an Era of High-Quality Competition" Large-scale corporate mergers do not necessarily mean all companies must pursue scale. Quite the contrary—the future coatings industry may witness a more pronounced polarization: 1. The coatings industry is entering the era of “bigger and finer.” At one end stand increasingly large, integrated coatings groups—operating global manufacturing facilities, managing multiple product platforms, leveraging large-scale procurement systems, and possessing cross-regional R&D capabilities. These enterprises serve multinational automakers, industrial conglomerates, and major infrastructure projects. Their advantages lie in scale, supply chain integration, and globalization. At the other end are increasingly specialized niche players—such as those focusing exclusively on high-temperature coatings, electronic materials coatings, battery coatings for new-energy vehicles, low-VOC resin systems, aerospace specialty coatings, or specific functional additives. Yet these firms must achieve deep technical mastery in their chosen domain. For small- and medium-sized coatings enterprises, the most perilous position may no longer be small size—but rather being a “jack-of-all-trades, master of none”: dabbling across many areas yet offering nothing truly irreplaceable. As the two industry leaders merge, not only is the top-tier competitive landscape being reshaped, but this mega-merger will also act as a core catalyst for global coatings industry consolidation—accelerating industry-wide upgrading, concentrating resources toward industry leaders, and gradually phasing out smaller enterprises with outdated capacity, weak technology, and insufficient core competitiveness. 2. Foreign investors are not “withdrawing”—they are “shifting赛道” (changing lanes).

AkzoNobel, Axalta Coatings Systems to be named Axanzo after merger

Oct 15, 2026

AkzoNobel and Axalta Coatings Systems will merge to form a global coatings company named Axanzo with a $25 billion enterprise value. Expected to close in early 2027, the combined entity will operate 173 manufacturing sites and 91 R&D facilities globally.

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