AkzoNobel, Axalta Near EU Approval for $25 Billion Merger

The companies are expected to receive conditional clearance from the European Commission after offering to sell Axalta’s vehicle refinishing business, Reuters reported Thursday, citing people familiar with the regulatory discussions.

The proposed divestiture would address the remaining antitrust obstacle to a transaction that would bring together two major international coatings manufacturers. The merger, announced in November 2025, is part of a broader industry effort to improve efficiency and manage rising operating costs.

The companies met with EU competition officials Wednesday to discuss potential concessions and are preparing to submit a formal proposal next week, according to Reuters.

That submission is expected to extend the Commission’s current Oct. 22 decision deadline by 10 working days, giving regulators additional time to assess whether the proposed remedies adequately protect competition.

Earlier regulatory concerns involving the companies’ overlapping powder coatings operations have been resolved, leaving automotive refinishing as the principal remaining issue, the people told Reuters.

The European Commission, AkzoNobel and Axalta declined to comment on the discussions, Reuters reported. No final regulatory decision has been announced.

Merger Would Reshape Global Coatings Market

The proposed combination would significantly expand the international reach of the two businesses.

Netherlands-based AkzoNobel, whose consumer brands include Dulux, operates across decorative paints and industrial coatings. U.S.-based Axalta specializes in coatings and has a substantial presence in the American market.

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The transaction comes as manufacturers face pressure to contain expenses while navigating uncertainty surrounding U.S. trade policy, including tariffs introduced under President Donald Trump.

Industry consolidation has become one way for companies to pursue cost reductions, expand their geographic reach and strengthen their positions in competitive markets.

Read more: Akzo Nobel Rejects €12.5 Billion Breakup Bid From Nippon Paint and Sherwin-Williams

The combined business would compete with major international suppliers, including BASF’s coatings operations, Nippon Paint, Sherwin-Williams and Kansai Nerolac, according to Reuters.

Regulatory Review Enters Critical Stage

The expected concession highlights the importance of addressing competition concerns in specific product markets, even when a merger involves companies with extensive global operations.

For AkzoNobel and Axalta, the proposed sale of the vehicle refinishing unit could provide a route toward approval without requiring broader changes to the transaction.

However, the outcome remains dependent on the Commission’s assessment of the formal remedies. An anticipated conditional approval does not constitute a final authorization, and the precise terms of any required divestiture have yet to be confirmed.

The companies previously indicated that they expect to complete their merger between late 2026 and early 2027, subject to regulatory approvals and other closing requirements, according to their corporate merger disclosures.

Source: Reuters