Dulux Paints Owner Akzo Nobel Agrees to Combine With Axalta

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Akzo Nobel has agreed to acquire Axalta in a $25 billion deal, forming a combined coatings company. Axalta shareholders will receive Akzo Nobel shares, with Akzo Nobel owning 55% of the new entity. This follows a failed merger attempt in 2017.

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AKZO NOBEL N.V.AXALTA COATING SYSTEMS LTDMergersEuropeNetherlandsAmericasMaterialsUnited StatesAkzo NobelAxaltamergerpaint industryacquisition

Akzo Nobel NV has agreed to acquire smaller rival paintmaker Axalta Coating Systems Ltd. in a cross-border deal creating a coatings company with an enterprise value of about $25 billion.

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Akzo Nobel NV has agreed to acquire smaller rival paintmaker Axalta Coating Systems Ltd. in a cross-border deal creating a coatings company with an enterprise value of about $25 billion.

Axalta shareholders will receive 0.6539 Akzo Nobel shares for each Axalta common stock, the companies said in a statement Tuesday. Akzo Nobel shareholders will own 55% of the combined company and Axalta shareholders will hold the rest.

The agreement, which confirmed an earlier report by Bloomberg News, is the second attempt at a combination by the two paintmakers. A previous merger effort fell short in 2017, when talks broke down after the companies failed to agree on terms.