Toronto, Ontario -- Leaders at the Netherlands-based AkzoNobel and Philadelphia-based Axalta are announcing plans for the companies to merge in an all-stock deal that will create one of the world’s largest paint and coatings companies, with about $17 billion in annual revenue.
“We are pleased to enter into this transaction with AkzoNobel and join our best-in-class platforms to enhance innovation, develop new capabilities and further strengthen customer relationships," said Chris Villavarayan, president and chief executive officer of Axalta. "Like AkzoNobel, we value our people as our greatest asset, and we are excited to unite our rich, innovation-focused cultures.”
Under the agreement, Axalta shareholders will receive 0.6539 shares of AkzoNobel for each Axalta share they own. Once the deal closes, AkzoNobel shareholders will own 55 percent of the combined company and Axalta shareholders will own 45 percent. AkzoNobel will also pay a special dividend before the merger is completed. Both companies will pause share buybacks until the deal closes.
According to the joint press release, Rakesh Sachdev, chair of the Axalta board of directors said the move is expected to bring significant value for all shareholders.
"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," he added.
Both firms make paints and protective coatings used on cars, buildings and industrial equipment. According to a press release, merging will allow the combined organization -- which will operate in 160 countries -- to expand in more regions and offer a wider mix of products. The move is also expected to cut costs by about $600 million each year. Most of those savings are expected within three years of the deal closing.
The combined business is expected to be valued at about $25 billion.
AkzoNobel chief executive Greg Poux-Guillaume will lead the new company. Axalta chief executive Chris Villavarayan will become deputy CEO, while Axalta board chair Rakesh Sachdev will chair the merged board. The board will have eleven members, including four from each company and three independent directors.
"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," said Poux-Guillaume. "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.”
The merged business will keep two headquarters, one in Amsterdam and one in Philadelphia. It will be legally based in the Netherlands and will eventually trade only on the New York Stock Exchange. A new company name and ticker symbol will be announced later.
The merger is expected to close in late 2026 or early 2027, pending regulatory and shareholder approvals.
