The producer of the famous Dulux paint, AkzoNobel, has announced its intentions to merge with the American corporation Axalta Coating Systems. The forthcoming conglomerate will have a total capitalization of about 25 billion dollars, which will significantly strengthen its position in the global chemical and coatings industry. According to an official statement by AkzoNobel, the company’s shareholders will receive a special payment of $2.5 billion. After the deal is finalized, they will control a 55% stake in the newly formed structure, while Axalta investors will receive the remaining 45%. AkzoNobel CEO, Gregoire (Greg) Poux-Guillaume, emphasized that this is a “merger without a premium,” implying an equal valuation of the companies. He also noted that the product portfolio of the combined business will be comparable to, or even surpass in quality, the offerings of BASF Coatings, one of its main competitors. Initially, the new organization will have dual listings—on the Amsterdam and New York stock exchanges. Subsequently, a transition to a single listing venue on the NYSE is planned, which will strengthen the company’s presence in the American market. Central offices will remain in Amsterdam and Philadelphia, ensuring continued access to critically important markets and production facilities. The head of the new holding will be the current CEO of AkzoNobel, Greg Poux-Guillaume, who expressed confidence that the merger will open new prospects for growth. The consolidated financial forecasts for the combined company are as follows: Annual Turnover: Approximately $17 billion Adjusted EBITDA: Around $3.3 billion Free Cash Flow (Adjusted): About $1.5 billion The most crucial driver for growth will be the synergy effect, which is expected to yield annual savings of about $600 million. Furthermore, 90% of these savings are planned to be achieved within the first three years after the deal closes. Poux-Guillaume particularly highlighted Axalta’s high profitability, which will become a significant component of the overall strategy: “What is impressive is not so much the speed of growth, but the profitability. Combined with AkzoNobel’s assets, this will lead to the best return figures in the industry.” The integration process is expected to be phased and will require regulatory approval in various jurisdictions. The deal is targeted to close by the end of 2026 or early 2027. According to analysts, this transaction will be among the most significant events in the sector over the last decade, setting new standards for profitability and scale in the global coatings market.
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