Post by : Badri Ariffin

In a major move shaking up the global coatings market, Dulux maker AkzoNobel revealed plans to merge with U.S.-based paint company Axalta Coating Systems. The deal will create a combined enterprise valued at $25 billion, positioning the new entity among the largest players in the industry.

As part of the merger, AkzoNobel shareholders will receive a $2.5 billion dividend payout and retain a 55% stake in the new company, while Axalta investors will hold the remaining 45%. Initially, the combined company will be dual-listed in Amsterdam and New York, before transitioning to a single NYSE listing, and it will operate with dual headquarters in Amsterdam and Philadelphia.

The new organization is projected to generate $17 billion in annual revenues, with adjusted core earnings (EBITDA) of $3.3 billion and $1.5 billion in free cash flow. The merger is also expected to deliver $600 million in annual cost savings, with 90% of these efficiencies anticipated within the first three years post-closure.

Analysts note that the merger emphasizes profitability over pure growth, with both companies bringing complementary strengths to the table. The combination is expected to streamline operations, improve margins, and strengthen market presence globally.

The transaction is targeted to close between late 2026 and early 2027, marking a significant consolidation in the paint and coatings sector.

#Business News