Akzo Nobel and Axalta Announce $25 Billion All-Stock Merger

In a significant move poised to reshape the global coatings industry, Akzo Nobel N.V. and Axalta Coating Systems Ltd. have announced an all-stock merger, creating a combined entity valued at approximately $25 billion. The agreement, unveiled on November 18, 2025, aims to leverage the complementary strengths of both companies to establish a leading position in the market.

Under the terms of the merger, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each Axalta share owned. Post-merger, AkzoNobel shareholders will hold 55% of the combined company, while Axalta shareholders will own 45%. The new entity will have dual headquarters in Amsterdam and Philadelphia and plans to transition to a single listing on the New York Stock Exchange. AkzoNobel CEO Greg Poux-Guillaume is set to lead the combined company as CEO, with Axalta CEO Chris Villavarayan serving as Deputy CEO.

The merger is expected to generate annual revenues of approximately $17 billion and adjusted EBITDA of $3.3 billion. The companies have identified cost synergies of around $600 million, with 90% anticipated to be realized within the first three years following the merger's completion. AkzoNobel has also announced a special cash dividend to its shareholders totaling €2.5 billion, adjusted for any regular dividends paid in 2026 prior to the merger's completion. The transaction is slated to close between late 2026 and early 2027, pending shareholder and regulatory approvals.

AkzoNobel, a Dutch multinational founded in 1792, is renowned for its brands such as Dulux, International, Sikkens, and Interpon. Axalta, headquartered in Philadelphia, specializes in liquid and powder coatings for automotive, industrial, and commercial applications. The merger will position the combined company as the second-largest global coatings firm, surpassing competitors like PPG and Nippon Paint, with only Sherwin-Williams being larger.

However, the merger has faced opposition from some investors. Artisan Partners, a significant shareholder in Axalta, has urged fellow shareholders to reject the deal. In a letter to Axalta shareholders, Artisan Partners fund managers Daniel O'Keefe and Michael McKinnon stated, "As an Axalta shareholder, we believe the only proper response to this proposed transaction is an absolute and resounding 'NO.'" They also expressed openness to engaging with alternative buyers.

The merger is subject to regulatory, antitrust, and shareholder approvals. The companies anticipate completing the transaction between late 2026 and early 2027. If successful, the combined entity is expected to enhance its competitive position, drive innovation, and deliver greater value to customers and shareholders alike.