AkzoNobel and Axalta have officially agreed to an all-stock merger of equals to create a new global leader in the coatings industry. The combined entity will have an enterprise value of approximately $25 billion and expected annual revenues of $17 billion. 

The merger is expected to generate approximately $600 million in annual cost synergies, with the transaction anticipated to close in late 2026 to early 2027, subject to regulatory approvals. 

The merger brings together AkzoNobel’s and Axalta’s complementary portfolios to create a full spectrum offering of coatings solutions, with first-rate franchises across Powder, Aerospace, Refinish, Mobility, Marine and Protective, Industrial Coatings and Decorative Paints. The combined portfolio will be differentiated by its breadth of solutions across approximately 100 well-known brands

The combined company will have an enhanced global footprint spanning 173 manufacturing sites, enabling it to bring global capabilities to local customers. The combination will enable AkzoNobel and Axalta to deliver increasingly advanced and differentiated products by combining existing technological capabilities across end markets.

The combined company will have approximately $400 million combined annual R&D spend, 91 R&D facilities for local customer needs, approximately 4,200 research fellows, scientists and engineers, and around 3,200 granted and pending patent applications.  

AkzoNobel shareholders will own 55% of the combined company, and Axalta shareholders will own the remaining 45%. Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock they own. 

Greg Poux-Guillaume, Chief Executive Officer and Chairman of the Board of Management of AkzoNobel, said: “We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry. This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential. I’m excited to lead our talented teams in bringing the best of both companies to our customers and shareholders, delivering outstanding value to both.” 

Rakesh Sachdev, Chair of the Axalta Board of Directors, said: “The Axalta Board is confident that this combination with AkzoNobel will create significant value for our shareholders as we move ahead. Led by an experienced management team with a track record of operational efficiency and excellence, we expect the meaningful synergy opportunities and enhanced financial profile of the combined company will drive substantial value creation. We look forward to joining Axalta’s and AkzoNobel’s strengths to create new opportunities across our global stakeholder base.” 

AkzoNobel CEO, Greg Poux-Guillaume, will serve as the CEO of the combined company. Axalta Chairman Rakesh Sachdev will serve as the chairman of the new entity's one-tier board.