A PYMNTS Company

AkzoNobel-Axalta $25 Billion Deal Hits UK Regulatory Roadblock

By  |  November 11, 2026
U.K. flag

AkzoNobel and Axalta Coating Systems face a potential deeper regulatory investigation in Britain after the country’s competition watchdog raised concerns that their proposed $25 billion merger could reduce competition in the market for automotive repair coatings.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The UK’s Competition and Markets Authority (CMA) said Wednesday that the combination of the Dutch paint manufacturer and its American counterpart could substantially weaken competition among suppliers of vehicle-refinishing products, according to a report by The Wall Street Journal.

    The regulator has given the companies until November 18 to propose measures addressing its concerns. Failure to offer acceptable remedies could trigger a more extensive Phase 2 investigation, potentially complicating the companies’ plans to complete the transaction in early 2027.

    The proposed merger would create a major global coatings manufacturer with approximately $17 billion in annual revenue, combining businesses serving automotive, aerospace, industrial, marine and decorative paint markets.

    UK Regulator Flags Market Concentration

    At the center of the CMA’s concerns is the market for vehicle-refinish coatings, which are used by automotive repair shops to restore damaged vehicles.

    AkzoNobel and Axalta currently compete closely in the British market, offering comparable products and technical services to repair businesses. Their combination would give the enlarged company an estimated 40% to 50% share of UK supply, according to the regulator’s findings reported by The Wall Street Journal.

    The CMA warned that eliminating competition between the two suppliers could leave customers with fewer alternatives, potentially resulting in higher prices, weaker service or reduced product quality.

    Related: EU Clears $25 Billion AkzoNobel-Axalta Merger With Antitrust Conditions

    The regulator’s preliminary findings do not constitute a final rejection of the transaction. Instead, the companies have an opportunity to propose commitments that would preserve competition before the watchdog decides whether a more comprehensive investigation is necessary.

    Companies Look to European Divestiture Plan

    AkzoNobel and Axalta indicated that they intend to address Britain’s concerns through a divestiture arrangement already negotiated with European Union regulators.

    Under that proposal, AkzoNobel would sell its European vehicle-refinish coatings operations, including the British business, to reduce the competitive overlap created by the merger.

    The European Commission conditionally approved the transaction last week following the companies’ agreement to dispose of those assets.

    In a joint statement issued Wednesday, the manufacturers said they were reviewing the CMA’s initial decision and would continue discussions with British and European authorities regarding the proposed remedies.

    Despite the additional regulatory scrutiny, both companies reiterated their expectation that the merger would close by early 2027, according to their official statement and reporting by The Wall Street Journal.

    Deal Still Awaits US Clearance

    The transaction, first announced in November 2025, received shareholder approval in August 2026, marking a significant milestone in the companies’ efforts to combine their global operations.

    Source: The Wall Street Journal