AkzoNobel and Axalta Agree $25 Billion Merger to Form Global Coatings Leader

On November 18, AkzoNobel and Axalta have announced a definitive agreement to combine in an all-stock merger, a move set to create a new global leader in the coatings industry with projected annual revenues of $17 billion.

The newly formed entity will establish a comprehensive portfolio across multiple high-performance sectors, including powder, aerospace, refinish, mobile electronics, marine and protective, industrial, and decorative coatings. It will go to market with an extensive portfolio of approximately 100 renowned brands.

The combined company's global operational footprint will comprise 173 manufacturing plants and 91 research and development (R&D) facilities worldwide. Its innovation capability will be underscored by an annual R&D expenditure projected at approximately $4 billion, supported by a team of around 4,200 researchers, scientists, and engineers. The entity's intellectual property will be backed by roughly 3,200 approved and pending patent applications.

Financially, the combined company is projected to achieve annual revenue of $17 billion, with an estimated enterprise value of $25 billion. It anticipates an adjusted EBITDA of $3.3 billion and an adjusted free cash flow of $1.5 billion. The merger is also expected to yield significant cost synergies of approximately $600 million.

Subject to regulatory and shareholder approvals, the transaction is anticipated to be completed between late 2026 and early 2027. The combined company will operate under a new name and stock ticker, which will be announced at a later date. It will maintain dual headquarters in Amsterdam, Netherlands, and Philadelphia, USA. The entity will be incorporated in the Netherlands and listed exclusively on the New York Stock Exchange.

The merger brings together two companies with established histories and significant operations in China. AkzoNobel, which first entered the Chinese market in the late 1970s, has built a substantial presence there, making China its largest single market globally. Its operations include an R&D centre in Shanghai and multiple production facilities in locations such as Changzhou and Ningbo.

While Axalta is a relatively newer company, its heritage includes the DuPont Performance Coatings business, bringing over 150 years of industry expertise. In China, Axalta operates through wholly-owned factories in Changchun and Shanghai, an Asia-Pacific R&D centre, and several joint venture facilities. The company has stated its commitment to becoming the preferred partner in China's high-end powder coatings market.