AkzoNobel, Axalta given week to settle UK competition concerns

(Sharecast News) - The UK's Competition and Markets Authority (CMA) has warned that the proposed merger between Dutch paint maker AkzoNobel and US rival Axalta could significantly reduce competition in the UK, giving the companies one week to offer remedies or face an in-depth investigation. The regulator said on Wednesday that its initial investigation had identified a realistic prospect of a "substantial lessening of competition" in the supply of vehicle refinish coatings, used by garages and bodyshops to repair and repaint vehicles.

AkzoNobel and Axalta have until 18 November to propose acceptable remedies, failing which the CMA will refer the deal for a more detailed Phase 2 investigation.

The proposed all-share merger, announced in November 2025, would create a global coatings group with approximately $17bn in annual revenues.

The UK watchdog said the combination would create a clear domestic market leader in vehicle refinish coatings, with a combined market share of between 40% and 50%.

It found that the companies compete closely, offering similar products and technical support, and that removing competition between them could result in higher prices or reduced quality and customer support, particularly at the premium end of the market.

However, the CMA found no significant competition concerns relating to thermosetting powder coatings, another area where the businesses overlap.

In a joint statement, the companies said they intended to address the CMA's concerns using the same remedy proposal agreed with the European Commission, involving the disposal of AkzoNobel's European vehicle refinish coatings business, including its UK operations.

The European Commission granted conditional approval to the merger on 6 November following those commitments.

AkzoNobel and Axalta said they remained confident of completing the transaction by early 2027.

AkzoNobel shares were up 0.8% at €64.26 in Amsterdam during morning trading, while Axalta was trading 0.5% lower in pre-market trade in New York.