Published by Global Banking & Finance Review®
Posted on November 18, 2025
3 min readLast updated: January 20, 2026
Add as preferred source on GoogleAkzoNobel and Axalta plan a merger to form a $25 billion paint giant, focusing on cost savings and enhanced profitability.
By Dimitri Rhodes
(Reuters) -Dulux paint maker AkzoNobel said on Tuesday that it plans to merge with paintmaker Axalta Coating Systems in a deal that will create a combined company with an enterprise value of $25 billion.
The combined company will be initially dual-listed in Amsterdam and New York before moving to a single NYSE listing, and maintaining dual headquarters in Amsterdam and Philadelphia. It will be led by current AkzoNobel chief executive Greg Poux-Guillaume as CEO.
Paint makers have been merging in order to save money in the face of rising costs, intense competition and the uncertainty created by U.S. President Donald Trump's tariffs. However, Poux-Guillaume said in an interview that the deal would enable the combined business to make cuts that will drive profitability.
He said the deal would leave the combined company with a higher margin product portfolio than rival BASF's coatings business, in which private equity firm Carlyle took a majority stake in October.
SAVINGS EXPECTED TO BOOST MARGINS
Poux-Guillaume said a large part of the value in the deal comes from cost savings rather than relying on an upturn in demand.
"If you look at Axalta, what really stands out is that they're very profitable," Poux-Guillaume said. "If you take the combined profitability of the two businesses put together, including the synergies, you're talking best in the market."
Shares in Akzo were flat at 1111 GMT, paring losses after falling as much as 3.7%, while those in Axalta were 2.5% lower, losing an earlier jump of 2.7%.
The new group is expected to generate a 20% core profit margin, Poux-Guillaume said. AkzoNobel's profit margin in the third quarter was 15.1%. In 2024, it was 13.8%.
It expects to deliver annual cost savings of $600 million, 90% of which are expected within the first three years following the close of the transaction.
AkzoNobel and Axalta's combined business is valued in the deal at eight times its annual earnings, Poux-Guillaume said. That compares with the valuation of 12 times earnings, which BASF sold the stake in its coatings business for.
The new company expects annual revenues of $17 billion, an annual adjusted core earnings, or earnings before interest, taxes, depreciation and amortisation, of $3.3 billion, and $1.5 billion in adjusted free cash flow.
Under the merger, AkzoNobel shareholders will receive a $2.5 billion dividend payout and are expected to own 55% of the new group, with Axalta investors owning the remaining 45%.
Completion of the merger is expected to close late 2026 to early 2027.
Axalta exclusively makes coatings, with a strong presence in the U.S. market. Following the merger, the combined group will be much more focused on coatings, which are more resilient in consumer downturns, than decorative paints, Poux‑Guillaume told Reuters.
(Reporting by Dimitri Rhodes; Editing by Matt Scuffham and Louise Heavens)
A merger is a business strategy where two companies combine to form a new entity, often to enhance financial performance, market share, and operational efficiencies.
Enterprise value is a measure of a company's total value, often used as a comprehensive alternative to market capitalization, including debt and excluding cash.
Profit margins are financial metrics that represent the percentage of revenue that exceeds the costs of goods sold, indicating how efficiently a company is generating profit.
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