Finance
Akzo Nobel, Axalta to merge creating $25 billion paint giant
Published by Global Banking & Finance Review®
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
Akzo Nobel and Axalta are merging to form a $25 billion paint giant, with dual listings in Amsterdam and New York, aiming for $17 billion in annual revenues.
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.
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%.
"This is a no premium merger with a company that's being valued at eight times EBITDA and it has a better portfolio, very comparable, but better portfolio than BASF <BASFn.DE> Coatings," AkzoNobel CEO Greg Poux‑Guillaume told Reuters.
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.
"If you look at Axalta, what really stands out is that they're very profitable," Poux‑Guillaume told Reuters.
"More than the growth, it's the profitability. And if you take the combined profitability of the two businesses put together, including the synergies, you're talking best in the market."
The new company expects annual revenues of $17 billion, an annual adjusted core earnings (EBITDA) of $3.3 billion, and $1.5 billion in adjusted free cash flow.
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.
Completion of the merger is expected to close late 2026 to early 2027.
(Reporting by Dimitri Rhodes; Editing by Matt Scuffham)
A merger is a business combination where two companies join to form a single entity, often to enhance market share, reduce competition, or achieve synergies.
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. It can be issued in cash or additional shares.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance.
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 cash.
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