Published by Global Banking & Finance Review®
Posted on November 19, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleArtisan 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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