AkzoNobel and Axalta Coating Systems are approaching European Union antitrust clearance for their proposed $25 billion merger, with the companies preparing to offer the divestment of AkzoNobel's vehicle refinish business to resolve outstanding competition concerns. Reuters reported from Brussels on October 8 that people familiar with the matter expect the transaction to receive conditional approval. Representatives of both companies met with EU competition regulators on October 7 to discuss possible remedies and the remaining obstacles to clearance.
The companies are expected to submit a formal remedy proposal next week. The European Commission's current October 22 review deadline is expected to be extended by 10 working days once the commitments are submitted. According to people familiar with the discussions, the transaction could receive clearance following the Commission's preliminary review, provided the proposed divestment satisfies the regulator's competition requirements.
The scope of the antitrust review has narrowed in recent discussions. The Commission had previously raised concerns about overlapping operations in powder coatings, but those issues have reportedly been resolved. Vehicle refinish coatings now represent the principal outstanding competition concern. Both AkzoNobel and Axalta maintain established positions in automotive refinishing, supplying coating products to vehicle repair businesses and professional refinish customers.
Announced in November 2025, the proposed combination ranks among the largest consolidation transactions in the coatings sector in recent years. Axalta has a strong position in the U.S. coatings market, while AkzoNobel operates an extensive international manufacturing and distribution network. The merger is intended to improve operating efficiency and reduce costs as coatings manufacturers contend with rising expenses and changes in global trade conditions.
Neither AkzoNobel nor Axalta has publicly commented on the reported remedy discussions. The European Commission has also declined to comment. The proposed divestment remains under discussion, and formal EU approval has not yet been issued. The next procedural step is the submission of the companies' remedy commitments, expected next week.
