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Merger Approved After Concession in Brussels
The proposed merger between the Dutch company AkzoNobel and the American company Axalta Coating Systems has just cleared a major regulatory hurdle.
The European Commission has approved this transaction, which is described as a merger of equals carried out through a stock-for-stock exchange. However, its approval remains conditional on the divestiture of a business unit. To address competition concerns, AkzoNobel and Axalta have committed to divest AkzoNobel?s European automotive refinish coatings business.
This measure is intended to eliminate the overlaps identified between the two companies in this market, in the European Union, the United Kingdom, and Switzerland. According to the Commission, no other competition concerns were identified in the other sectors examined.
A future group specializing in seascapes
The merger is expected to create a global coatings manufacturer with combined revenue of approximately $17 billion. The new entity will bring together several business segments: decorative paints, industrial coatings, powders, aerospace, automotive, corrosion protection, and marine paints.
In the boating sector, this transaction warrants special attention. AkzoNobel is notably active in the marine coatings market with its International and Awlgrip brands. However, the press release does not mention any announced changes regarding the marine product lines, their distribution, or the terms and conditions offered to boat builders and recreational boaters.
The divestiture required by Brussels concerns automotive refinish paints, not marine coatings.
Completion is expected in early 2027
The merger still needs to obtain the remaining regulatory approvals. It is expected to be finalized in early 2027.
Greg Poux-Guillaume, the current CEO of AkzoNobel, is set to take the helm of the future group. Chris Villavarayan, Chairman and CEO of Axalta, is set to become Deputy CEO. For professionals in the marine industry, the challenge will now be to monitor the industrial and commercial implications of this merger.
At this stage, the European approval primarily confirms that marine painting operations are not included in the divestitures mandated by Brussels. How these operations will be organized within the future group has yet to be determined.
