Business · Companies · 3 hrs ago
EU approves AkzoNobel-Axalta merger if car-paint unit is sold
The EU has approved a merger between AkzoNobel and Axalta, a Dutch and a US coatings producer.
The approval comes with a condition: AkzoNobel must sell its European car-paint business.
The Commission said the merged company could otherwise become too powerful in coatings used to repair cars.
Garages use special equipment to mix these paints, so switching suppliers can be difficult.
The Commission is concerned that this could lead to higher prices or lower-quality service for consumers.
The deal can proceed only after a suitable buyer is found and approved by the Commission.
The European Commission approved the merger of paintmakers AkzoNobel and Axalta on condition that AkzoNobel sell its European car-paint unit.
The Commission said the combined company could otherwise become too large in car paints and potentially lead to higher prices for repair garages.
Garages may find it difficult to switch suppliers because they use specialized equipment for mixing paint.
The sale must be to a suitable buyer, which the Commission must also approve.
Shareholders of both companies voted almost unanimously in August in favor of the merger plan.
- Who
- AkzoNobel and Axalta. The European Commission approved their merger subject to a condition.
- What
- The Commission approved the merger if AkzoNobel sells its European car-paint unit to a suitable buyer approved by the Commission.
- When
- The approval was announced on November 6, 2026. Shareholders approved the merger plan in August.
- Where
- The sale condition applies to AkzoNobel’s car-paint unit in Europe.
- Why
- The Commission said the combined company could become too large in car paints and that repair garages could face higher prices.
This story does not have two clearly opposing sides.
Shareholders of AkzoNobel and Axalta voted almost unanimously in favor of the merger plan.
The European Commission approved the merger on condition that AkzoNobel sell its European car-paint unit to a suitable buyer approved by the Commission.
- Companies
- AkzoNobel and Axalta
- Condition
- AkzoNobel must sell its European car-paint unit
- Buyer approval
- The European Commission must approve the buyer
- Shareholder votes
- Both companies’ shareholders voted almost unanimously in August in favor of the merger plan
- Market position
- Axalta is the largest coatings producer; AkzoNobel is fourth
What people are saying
European consumers are already facing rising prices for mobility and transport. Affordable car repairs are important for commuters and families to keep the car roadworthy throughout its entire life.
The commitments made by AkzoNobel and Axalta regarding their merger prevent players in the car-repair market from seeking high margins, rising prices or poorer quality at consumers’ expense.