AkzoNobel and Axalta have until 18 November to address UK competition concerns over their planned $25bn merger or face a more detailed investigation.
The UK regulator, the Competition and Markets Authority (CMA), has completed its initial Phase 1 review, raising concerns about the supply of vehicle refinish coatings in the UK. Bodyshops and repair centres use these products to repaint damaged vehicles.
The regulator found that the combined business would account for between 40 and 50 per cent of UK supply, putting it ahead of other suppliers. AkzoNobel and Axalta compete closely, offering similar coatings and technical support, with extensive approvals from vehicle manufacturers and insurers.
The CMA is concerned that losing this competition could mean higher prices, lower product quality or less support for customers. Unless the companies offer a suitable remedy, the deal faces an in-depth Phase 2 investigation.
AkzoNobel and Axalta plan to address the concerns through the divestment package already agreed with the European Commission. This involves selling AkzoNobel’s European vehicle refinish coatings business, including its UK operations.
“The companies will continue to engage constructively with both the European Commission and the CMA on this remedy package,” they say in a joint statement issued on 11 November. “AkzoNobel and Axalta remain confident that the merger will be completed by early 2027.”
European approval and proposed divestment
The AkzoNobel Axalta merger UK regulator’s comments come after the European Commission gave the merger conditional approval last week. The agreed sale is intended to remove the overlap between the companies’ vehicle refinish operations in the European Economic Area, UK and Switzerland.
The combined group would have approximately $17bn in revenue, with businesses in marine and protective coatings as well as decorative paints and other industrial coatings.
The European Commission identified no competition concerns in other markets.
Merger timeline for planned Axanzo business
AkzoNobel and Axalta announced the merger in November 2025, and shareholders approved it in August 2026. That approval followed Nippon Paint Holdings’ €7.5bn offer for AkzoNobel’s decorative coatings business, a rival proposal aimed at disrupting the Axalta transaction.
In October, the companies announced Axanzo as the planned name for the merged business.
AkzoNobel chief executive Greg Poux-Guillaume is due to lead the combined company. Axalta chief executive and president Chris Villavarayan would become deputy chief executive.
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