Akzo Nobel Seals €7.9 Billion Axalta Deal, Plans New York Listing

Akzo Nobel NV has agreed to acquire Axalta Coating Systems in an all-share deal valued at €7.9 billion. The agreement follows multiple past attempts by the two companies to explore a combination.

Deal Structure and Share Exchange Terms

The transaction will see Axalta shareholders receive 0.6539 Akzo Nobel shares for each Axalta common share. Based on these terms, the equity value of the deal is estimated at €7.9 billion, according to Bloomberg calculations.

Post-merger, Akzo Nobel shareholders will hold around 55% of the combined company. The merged entity will shift its primary listing to the New York Stock Exchange, although it will remain domiciled in the Netherlands. Shares will have dual headquarters in Amsterdam and Philadelphia.

Industry Context and Company Backgrounds

The coatings industry has been managing global headwinds including tariffs and softer economic conditions. Akzo Nobel recently revised its earnings outlook and has been implementing a cost-reduction strategy involving site closures and workforce adjustments.

Axalta, once a part of DuPont de Nemours, manufactures industrial coatings used in automotive and general manufacturing applications, including powder coatings. Akzo Nobel operates a broad portfolio of consumer brands such as Dulux, Cuprinol, Hammerite and Polyfilla.

Industry consolidation has been an ongoing theme, with previous merger discussions between Akzo Nobel and Axalta in 2017 not resulting in an agreement. Akzo Nobel also rejected a takeover proposal from PPG Industries that same year.

Scale of the Combined Business

The combined company will have an enterprise value of around $25 billion and operations across more than 160 countries. The merger is expected to generate run-rate synergies of approximately $600 million, with about 90% anticipated within the first three years after closing.

Read More: Asian Paints Interim Dividend Record Date.

Conclusion

Akzo Nobel’s acquisition of Axalta marks a step in ongoing consolidation efforts within the coatings sector. Both companies will now focus on regulatory approvals and integration planning to complete the proposed share-based transaction.

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