Akzo Nobel and Axalta Announce a $25 Billion Merger Deal

AkzoNobel said on Tuesday that it plans to acquire coatings manufacturer Axalta Coating Systems. The transaction will create a combined company with an enterprise value of $25 billion.

AkzoNobel shareholders are expected to hold 55% of the new group, while Axalta investors will hold 45%. The new group will initially be dual-listed in Amsterdam and New York, after which it will shift to a single listing on the New York Stock Exchange, while retaining dual headquarters in Amsterdam and Philadelphia. The combined company will be led by current AkzoNobel CEO Greg Poux-Guillaume.

In a statement, Greg said: “This merger will enable us to accelerate our growth objectives by integrating highly complementary technologies. The combined company will have a higher-margin product portfolio than our competitor BASF.”

Amid rising costs, intense competition, and uncertainties caused by U.S. tariff policies, coatings manufacturers have been consolidating to save expenses. Greg noted that the merger will allow the new company to cut costs—its primary source of value—thereby improving profitability instead of relying on a recovery in demand.

The new company is expected to generate annual revenue of $17 billion, adjusted annual core earnings (EBITDA) of $3.3 billion, and adjusted free cash flow of $1.5 billion. It is projected to achieve annual cost savings of $600 million, 90% of which is expected within the first three years after the deal closes. The merger is expected to be completed between late 2026 and early 2027.