Britain’s Competition and Markets Authority (CMA) said the proposed merger of Akzo Nobel N.V. and Axalta Coating Systems Ltd. may weaken competition in at least one U.K. market, setting up a possible deeper review.
In its Phase 1 decision announced Nov. 11, the regulator said available evidence indicated that the deal “may be expected to result in a substantial lessening of competition” in at least one U.K. market. The CMA plans to send the merger to a detailed Phase 2 review unless the parties provide an undertaking it accepts to address the concerns. The regulator’s case page lists the inquiry as open.
The U.K. review follows the European Commission’s Nov. 6 conditional clearance, which required AkzoNobel to sell its EEA vehicle-refinish coatings business. An earlier EconoTimes report on the EU clearance and divestiture outlined the condition.
The companies have said they expect to complete the all-stock deal in early 2027, subject to remaining regulatory approvals and the European Commission’s commitments. The parties can avert a Phase 2 referral by offering an undertaking the CMA accepts to address its competition concerns.
