Conditional EU antitrust approval seen for AkzoNobel-Axalta deal, sources say

• The companies will offer to divest Axalta's vehicle refinish business to address EU competition concerns, while earlier issues regarding powder coatings overlaps have been resolved
• The $25 billion merger represents part of a broader consolidation wave in the paint industry as manufacturers seek cost savings amid rising expenses and tariff uncertainties under US trade policies
• Key competitors in the coatings market include BASF's coatings business, Nippon Paint, Sherwin-Williams, and Kansai Nerolac, with Axalta having particularly strong presence in the US market

Summary

Deal Overview:

AkzoNobel (Dulux paint maker) and U.S.-based Axalta Coating Systems are expected to receive conditional EU antitrust approval for their $25 billion merger, according to sources familiar with the matter. The companies announced the deal in November of the previous year as part of industry consolidation driven by rising costs and uncertainties surrounding U.S. tariffs under President Trump.

Key Condition:

To address competition concerns, the companies will need to divest Axalta's vehicle refinish business. Earlier concerns regarding overlaps in the powder coatings segment have been resolved, leaving vehicle refinish as the sole remaining issue.

Timeline:

The companies met with the European Commission on Wednesday to discuss remedies and plan to submit their formal offer next week. This submission will extend the Commission's current October 22 deadline by 10 working days.

Companies Involved:

• AkzoNobel: European paint manufacturer known for Dulux brand
• Axalta Coating Systems: U.S.-based coatings specialist with strong presence in the American market
• Competitors: BASF's coatings business, Nippon Paint, Sherwin-Williams, and Kansai Nerolac

Market Context:

The merger represents significant consolidation in the global paint and coatings industry, as manufacturers seek economies of scale to combat rising costs and navigate trade policy uncertainties.

All parties—the European Commission, AkzoNobel, and Axalta—declined to comment on the reported developments.