Dutch paint and coatings giant AkzoNobel has agreed to acquire its smaller rival, Axalta Coating Systems, in a cross-border deal that creates a coatings company valued at around $25bn.
The combined business has revenues of approximately $17bn. The merger will generate cost synergies of approximately $600m, 90 per cent of which are expected to be realised within the first three years post-transaction.
The leadership team will include Greg Poux-Guillaume, CEO of AkzoNobel, who will serve as the CEO of the combined company, and current Axalta CEO, Chris Villavarayan, who will serve as deputy CEO. Rakesh Sachdev, chair of Axalta’s board of directors, will serve as chair. Current Axalta SVP and CFO, Carl Anderson, will serve as the CFO of the combined company. Current AkzoNobel CFO, Maarten de Vries, will retire from AkzoNobel prior to closing, as previously announced.
The company will have dual headquarters in Amsterdam and Philadelphia, with a single listing on the NYSE post-completion.
The board will be composed of 11 directors – four from each company and three independent members. Of the 11 board members, two will be executive directors and nine will be non-executive directors.
The combined company will assume a new name and will operate under a Dutch holding company with tax residency in the Netherlands.
The transaction, which is expected to close between late 2026 and early 2027, is subject to regulatory approvals and shareholder approval from both AkzoNobel and Axalta. Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned. Upon completion, AkzoNobel shareholders will own 55 per cent of the combined company, and Axalta shareholders will hold 45 per cent.
The merger brings together AkzoNobel’s and Axalta’s coatings portfolios, covering markets including powder, aerospace, refinish, mobility, marine, protective, industrial and decorative paints. The combined company will benefit from an increased global footprint, with 173 manufacturing sites and 91 R&D facilities worldwide.
The merger comes at a time of uncertainty for coatings firms, with issues including stringent regulations, demands for more fuel savings, data validation and global supply chain problems all putting pressure on the sector.
In September 2024, AkzoNobel confirmed it plans to cut around 2,000 jobs worldwide as it attempted to cut its costs.
The firm’s Q3 2025 results showed its profitability had improved to 15.1 per cent.
Greg Poux-Guillaume, chief executive of AkzoNobel, says: “We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry. 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.”
Chris Villavarayan, CEO and president of Axalta, adds: “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.
“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. Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry.”
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