On Nov. 6, the European Commission conditionally cleared the all-stock merger of Akzo Nobel N.V. and Axalta Coating Systems Ltd., requiring a sale of EEA vehicle-refinish operations to address competition concerns.
According to the Commission, the four biggest companies account for between 80% and 90% of sales in the EEA vehicle-refinish coatings market. Axalta is the largest supplier, while AkzoNobel ranks fourth. The Commission said joining them could increase market power and result in higher prices for repair garages and consumers.
Many repair garages use suppliers’ scanning and mixing equipment; the Commission said that reliance can make it hard to change vendors. The regulator warned that customers could have less ability to resist price increases if the combined company gained pricing strength.
The required sale covers AkzoNobel’s EEA vehicle-refinish coatings business. The Commission described a package with a production site capable of sustaining current volumes, as well as the staff, intellectual property, other assets and transition support needed for the operation. A buyer must already work in coatings supply or a related industrial field. The Commission’s approval of the purchaser is required before the merger takes effect, and an independent trustee will monitor compliance.
The merger agreement, signed Nov. 18, 2025, sets the exchange ratio: 0.6539 AkzoNobel shares would be exchanged for each Axalta share. The companies estimate AkzoNobel shareholders would own about 55% of the combined company, with Axalta shareholders holding about 45%.
The companies described their portfolios as complementary and projected annual run-rate cost synergies of about $600 million. They also put combined 2024 revenue at about $17 billion.
AkzoNobel and Axalta expect to complete the transaction in early 2027, provided remaining regulatory approvals are secured and the Commission’s commitments are met. The U.K. Competition and Markets Authority (CMA) lists its inquiry as open, with a Phase 1 decision due Wednesday, Nov. 11, 2026.
