AkzoNobel and Axalta Coating Systems’ plan to create a global paint and coatings giant will be reviewed by merger control authorities in the US, the EU and the UK, an AkzoNobel spokesperson has confirmed to this news service.

On a direct question from this news service, the spokesperson said that in addition to shareholder approval, the deal will require clearances from relevant authorities, including the US Federal Trade Commission (FTC), the European Commission (EC) and the UK’s Competition and Markets Authority (CMA).

The agreement to combine through a “merger of equals”, entered into last week, will create a “global coatings leader” with an enterprise value of USD 25bn and USD 17bn in proforma 2024 revenues, according to the joint press release announcing the deal.

Although the companies stressed that they have “highly complementary portfolios” and different geographic strongholds, the deal is likely to face some intense scrutiny, particularly because both companies are leaders in powder coatings, according to a source familiar with the deal.

Past EC merger decisions in this industry highlight the significant market presence of Axalta and AkzoNobel in various product segments.

In 2016, when the EC cleared AkzoNobel’s acquisition of BASF’s industrial coatings business, its investigation identified the resulting company as the main player in the European market for powder coatings, followed by Axalta. At the time, third parties singled out Axalta as the “closest competitor” to AkzoNobel in this space.

According to the Commission, powder coatings are normally used to create a “hard finish”, used mainly to coat metal substrates, such as white goods, aluminium extrusions, and automobile and bicycle parts.

AkzoNobel and Axalta already explored a possible merger in 2017. At the time, this news service reported that the EC would likely require powder coating divestments for deal approval.

AkzoNobel, headquartered in Amsterdam, is one of the biggest paint companies in the world. It makes paints and performance coatings for both DIY consumers and industry users worldwide.

Its coatings are used for cars and commercial vehicles, aircraft, ships and offshore structures, heavy equipment, pipelines, appliances, furniture, and architectural applications.

Philadelphia-based Axalta, meanwhile, calls itself a global leader in the coatings industry, specialising in coatings for light vehicles, commercial vehicles, and refinish applications for electric motors. It also provides coatings for building facades and other industrial applications.

The companies have said they expect the proposed transaction to close in late 2026 to early 2027, subject to regulatory clearances and other approvals.

On a call with investors on the day of the deal announcement (18 November), Axalta CEO Chris Villavarayan said the companies are submitting regulatory filings “in many jurisdictions”, but didn’t go into further detail.

Axalta did not reply to requests for comment.