A major European automotive refinish business has been earmarked for sale to help secure approval for a US$25-billion coatings merger.
AkzoNobel CEO Greg Poux-Guillaume confirmed on Oct. 21 that the planned disposal covers the Dutch paint manufacturer’s European vehicle refinish operations.
The sale is one of two concessions proposed as regulators review AkzoNobel’s merger with Axalta Coating Systems, a U.S.-based coatings manufacturer.
Axalta’s North American Building Products business is also expected to be sold.
Poux-Guillaume told Reuters that regulators had requested no other business disposals. The proposed sales are intended to address competition concerns in Europe and the United States.
Axalta CEO Chris Villavarayan attributed the Building Products disposal to regulatory requirements rather than poor business performance. He outlined the decision in an Oct. 20 staff announcement filed with U.S. securities regulators.
The merger remains subject to outstanding approvals and other closing conditions. Completion is expected in early 2027.
The combined company will be called Axanzo, with the proposed stock symbol AXZ on the New York Stock Exchange and Euronext Amsterdam.
Until closing, the two manufacturers will operate separately. Customers will continue dealing with their existing teams and brands.
Poux-Guillaume reaffirmed the expected closing date in AkzoNobel’s Oct. 21 quarterly results release.
“Meanwhile, our merger with Axalta is firmly on track, with regulatory approvals advancing and closing expected in early 2027,” he said.
