AkzoNobel and Axalta Agree to Merge Creating $25 Billion Coatings Group
AkzoNobelDealroom has a profile for this one. Try Dealroom → and AxaltaDealroom has a profile for this one. Try Dealroom → have agreed to merge in an all-stock deal that will create a global coatings company worth $25 billion . After the transaction, which follows an unsuccessful attempt to combine in 2017, AkzoNobel investors will own 55% of the new group, while Axalta shareholders will hold 45%.
The combined company will maintain dual headquarters in Amsterdam and Philadelphia and initially trade on both Euronext Amsterdam and the New York Stock Exchange before moving to a single NYSE listing. It will be led by AkzoNobel CEO Greg Poux-GuillaumeDealroom has a profile for this one. Try Dealroom →.
The merger is motivated primarily by cost efficiencies . The companies expect annual savings of $600 million , with 90% realised within three years of completion. Poux-Guillaume said Axalta’s strong profitability and the anticipated synergies would help the merged business achieve a core profit margin of around 20%.
The deal values the combined business at roughly eight times annual earnings. The new group is expected to generate annual revenue of $17 billion , adjusted EBITDA of $3.3 billion and adjusted free cash flow of $1.5 billion .
Industry consolidation has accelerated as paint and coatings makers respond to rising costs, competitive pressures and trade uncertainty, including U.S. tariff policy. Axalta’s strong presence in the U.S. and its concentration in performance coatings will shift the combined company further toward industrial and automotive customers and make it less reliant on decorative paints.
The transaction is expected to close between late 2026 and early 2027 . If completed, the deal will bring together two long-standing rivals to create one of the world’s largest coatings specialists, with a more focused portfolio and greater scale to navigate a challenging market environment.
Sources:
Bloomberg
Reuters
Axalta
AkzoNobel
J.V.
