Dutch paint giant AkzoNobel merging with U.S. counterpart Axalta
Dutch paint manufacturer AkzoNobel is merging with its American counterpart Axalta Coating Systems, the companies announced on Tuesday. The merger will create a global coatings company valued at approximately $25 billion, or around €21.5 billion. AkzoNobel spoke of an “all-stock merger of equals.”
The companies did not mention the amounts involved in the merger, but Bloomberg estimates that AkzoNobel is paying approximately €7.9 billion for Axalta based on the company’s closing share price on Monday.
The combined company will get a new name and be listed on the New York Stock Exchange, so AkzoNobel’s shares will be delisted from the Amsterdam Stock Exchange. The merged company will have dual headquarters in Amsterdam and Philadelphia, with the official domicile in the Netherlands. AkzoNobel CEO Greg Poux-Guillaume will lead the new combined company, and Axalta chairman Rakesh Sachdev will be its chairman.
“We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry. 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,” Poux-Guillaume said.
Under the terms of the agreement, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned. After closing, AkzoNobel shareholders will own 55 percent of the combined company, and Axalta shareholders will own 45 percent. As part of the deal, AkzoNobel will pay a special cash dividend to its shareholders, amounting to €2.5 billion minus the total amount of normal annual and semi-annual dividends that AkzoNobel will pay before the merger closes.
The companies expect to complete the merger by early 2027 at the latest, subject to shareholder and regulatory approvals.
