Merger of Akzo Nobel and Axalta: New paint manufacturer group with 17 billion in revenue

Acquisition Akzo Nobel Wants to Acquire Axalta

2025-11-19 Source: dpa 2 min Reading Time

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The merger of the two paint manufacturers is set to create a corporation with annual revenue of 17 billion US dollars.

The Akzo Nobel headquarters in Amsterdam.(Image: Akzo Nobel) — The Akzo Nobel headquarters in Amsterdam.
(Image: Akzo Nobel)

The paint and coatings manufacturer Akzo Nobel aims to merge with Axalta, the former DuPont coatings division. The merger will create a corporation with annual revenue of 17 billion US dollars and a company value, including debts, of approximately 25 billion dollars, the Dutch producer of Dulux paints and the automotive coatings specialist from the USA announced on Tuesday.

Axalta shareholders are to receive approximately 0.65 Akzo Nobel shares per share rounded. Additionally, Akzo Nobel shareholders, who will hold 55 percent of the new company, are to receive a special cash dividend. Specifically, a total amount of USD 2.9 billion is planned, minus the regular annual and interim dividends, which are to be paid before the transaction is completed in 2026. The deal is expected to close late in 2026 or in the spring of 2027.

Acquisition Instead of Merger

Akzo Nobel is also significantly more valuable on the stock exchange than the US company. As of the close of trading on Monday, the Dutch company had a market capitalization of USD 11.2 billion, while Axalta Coating Systems reached approximately USD 6.0 billion.

Morrow Batteries is one of the few cell manufacturers in Europe. (Image:studio-dam/Morrow Batteries)

Even though the companies' press releases might sound different, he does not see the deal as a merger of equals but rather as an acquisition of the U.S. company by Akzo Nobel, explained analyst James Hooper from Bernstein Research. The special dividend is likely to somewhat console Akzo shareholders for paying an acquisition premium of around 13 percent based on his calculations.

From the merger, the companies expect permanent annual cost savings of approximately 600 million dollars. Of this, 90 percent is expected to be realized within the first three years after the merger is completed.

Doubts About Planned Savings

With regard to the planned savings, Bernstein expert Hooper sees potential in the areas of supply chain, procurement, and locations, despite relatively limited overlaps in the businesses of both companies, "as many raw materials are used for both automotive and other coatings, and locations can be utilized flexibly and therefore rationalized." However, he sees some question marks behind the planned savings in sales and administration. It remains unclear whether ongoing savings programs have already been taken into account here.

As early as 2017, the two companies had flirted with a merger but were unable to agree on the terms. In spring 2025, there was speculation about Akzo Nobel's interest in the coatings division of the chemical group BASF. However, BASF sold this business unit in October to U.S. private equity firm Carlyle.

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Date: 08.12.2025

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