AkzoNobel and Axalta Coating Systems are approaching European Union antitrust clearance for their proposed $25 billion merger. The companies announced the deal in November last year, underscoring a wave of consolidation among paint makers to save money in the face of rising costs created by the tariffs imposed by US President Donald Trump.
The European Commission’s current October 22 review deadline is expected to be extended by 10 working days once the commitments are submitted. The Commission had previously raised concerns about overlapping operations in powder coatings, but those issues have reportedly been resolved. Both AkzoNobel and Axalta maintain established positions in automotive refinishing, supplying coating products to vehicle repair businesses and professional refinish customers.
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Axalta Coating Systems currently has earnings of +0.51%, which suggests that analysts have recently become bullish on the company’s earnings prospects. Neither AkzoNobel nor Axalta has publicly commented on developments in the deal. The European Commission has also declined to comment. The proposed divestment remains under discussion, and formal EU approval has not yet been issued.
