Dutch coatings powerhouse AkzoNobel and American company Axalta have come to an agreement to merge, creating a $25 billion (£19 billion) worldwide coatings enterprise. Under the merger, AkzoNobel investors will hold 55% while Axalta stakeholders will possess 45% of the newly formed organization, headquartered in the Netherlands and listed on the New York Stock Exchange. The union is projected to generate approximately $600 million in expected cost efficiencies.
AkzoNobel reported a revenue of $11.6 billion for 2024, whereas Axalta displayed $5.3 billion. The combined entity will operate with a global presence of 173 manufacturing locations and 91 research and development facilities, alongside an annual R&D investment of $400 million. This merger represents a trend of consolidation within the coatings sector, aiming to leverage scale for sustainable longevity.
AkzoNobel excels in industrial, protective, marine, powder, and decorative categories, featuring its Dulux brand. On the other hand, Axalta specializes in industrial and automotive coatings in the United States. Analysts perceive the merger as a strategy for achieving efficiency gains rather than pursuing expansion, targeting 90% of cost reductions within a three-year timeframe.
Major regulatory challenges are not expected; however, some overlapping sectors in vehicle refinishing along with industrial and wood coatings may necessitate divestiture. This merger puts pressure on other significant competitors such as PPG and Sherwin-Williams to reevaluate their strategies. The agreement is anticipated to be completed between late 2026 and early 2027, encouraging further consolidation and acquisition efforts within the industry.