AMSTERDAM, Netherlands & PHILADELPHIA, PA — Akzo Nobel N.V. (AKZA; AKZOY) and Axalta Coating Systems (NYSE: AXTA) unveiled a sweeping all-stock merger of equals that will create one of the largest coatings companies in the world, a $25 billion enterprise with $17 billion in annual revenue and a global footprint spanning more than 160 countries.
The companies announced a definitive agreement to combine operations, uniting two storied industry players whose brands, technologies, and research platforms have long helped define global coatings markets across automotive, aerospace, industrial, marine and protective, and decorative segments.
Executives said the merger will deliver substantial financial benefits, including an estimated $600 million in annual cost synergies, 90% of which are expected within three years of closing. The combined firm will feature robust EBITDA margins approaching 20% and generate an expected $1.5 billion in pro forma adjusted free cash flow, positioning it for sustained growth and continued dividend payouts.
AkzoNobel CEO Greg Poux-Guillaume will lead the combined company, with Axalta CEO Chris Villavarayan serving as deputy CEO and Axalta CFO Carl Anderson assuming the role of CFO. Rakesh Sachdev, current chair of Axalta’s board, will serve as chair of the new single-tier board. Headquarters will be split between Amsterdam and Philadelphia, with the company domiciled in the Netherlands and ultimately listed solely on the New York Stock Exchange.
“This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people,” Poux-Guillaume said. “We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry.”
Axalta leadership echoed the sentiment. “This combination enables us to enhance innovation, strengthen customer relationships and create new opportunities across our global stakeholder base,” Villavarayan said.
The merged organization will span 173 manufacturing sites and 91 R&D facilities, supported by more than 4,200 scientists and engineers and a shared portfolio of around 100 well-known brands. Leaders say the expanded reach will allow the combined company to better serve customers at the local level while leveraging global scale.
Under the terms of the agreement, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each Axalta share owned. AkzoNobel will also issue a special cash dividend to its shareholders totaling €2.5 billion, adjusted for dividends paid in 2026 prior to closing. The ownership split of the merged company will be 55% AkzoNobel shareholders and 45% Axalta shareholders.
Both companies agreed to suspend existing or planned share buybacks during the merger process. AkzoNobel intends to maintain its regular dividend schedule.
The deal, unanimously approved by both companies’ boards, is expected to close between late 2026 and early 2027, pending shareholder approval, regulatory review, and other customary conditions.
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