Finance
Axalta investor Artisan Partners urges rejection of AkzoNobel deal
Published by Global Banking & Finance Review®
Posted on November 19, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 19, 2025
2 min readLast updated: January 20, 2026
Artisan Partners urges Axalta shareholders to reject the merger with AkzoNobel, citing concerns over the deal's value and potential alternatives.
By Svea Herbst-Bayliss
NEW YORK (Reuters) -Investor Artisan Partners is unhappy with Axalta Coating Systems' plans to combine with AkzoNobel in an all-stock deal that will create a paint industry giant with an enterprise value of $25 billion.
"As an Axalta shareholder, we believe the only proper response to this proposed transaction is an absolute and resounding 'NO,'” Artisan Partners fund managers Daniel O'Keefe and Michael McKinnon wrote in a letter to Axalta shareholders.
The pair said they would be interested in speaking with any other interested buyers.
THE DETAILS
* Artisan Partners wrote that Axalta's decision to combinewith AkzoNobel came out of the blue * Axalta executives told investors on the third-quarterearnings call that it made sense to allocate all free cash flowto share repurchases, Artisan's letter said. * Axalta executives said they "expect to repurchase asignificant amount of Axalta stock" based on management'sconfidence in where the business can go in coming years. * Axalta specializes in industrial and car coatings and wentpublic in 2014. * Previous deal talks with AkzoNobel failed in 2017. * AkzoNobel CEO Greg Poux-Guillaume will become CEO of thecombined company.THE NUMBERS
* Axalta's stock has dropped roughly 15% this year. * Artisan is a small investor in Axalta. * The Artisan letter said AkzoNobel's "numbers speak forthemselves. This is a company whose earnings and adjustedearnings per share are lower over one-, five- and ten-yearperiods." * AkzoNobel did not immediately respond to a request forcomment.(Reporting by Svea Herbst-BaylissEditing by Rod Nickel)
An all-stock deal is a type of acquisition where the purchasing company uses its own stock to pay for the acquired company, rather than cash or other forms of payment.
Enterprise value is a measure of a company's total value, often used as a comprehensive alternative to market capitalization. It includes equity value, debt, and subtracts cash and cash equivalents.
Share repurchases occur when a company buys back its own shares from the marketplace, reducing the number of outstanding shares and often increasing the value of remaining shares.
Adjusted earnings per share (EPS) is a company's earnings per share after accounting for one-time events or unusual items, providing a clearer view of ongoing profitability.
A shareholder is an individual or institution that owns shares in a company, giving them a claim on part of the company's assets and earnings.
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