• Parties initially merger as simple case several months ago
• Normal case filing recently accepted; review now underway
• Sensitive sector, industry concerns may have influenced switch

China’s antitrust regulator has moved its review of Dutch paints and coatings giant AkzoNobel’s proposed merger with US peer Axalta from its simplified procedure to the normal review track, according to two sources familiar with the matter.

The transaction was originally filed under the State Administration for Market Regulation’s (SAMR) simplified procedure. However, the parties were later asked by the regulator to refile the case under the normal track, the sources said.

According to one of them, SAMR requested the refiling in June or July. The agency has recently formally accepted the refiling for review under its normal procedure, the same source added.

SAMR requested a narrower definition of the relevant markets, the first source said, adding that the revised filing divides the vehicle coatings market into separate categories for commercial vehicles and passenger vehicles.

The deal being in a sensitive sector and industry concerns raised by market participants may also have contributed to the regulator’s decision to transfer the case, the same source added.

SAMR has increasingly been shifting transactions initially filed as simple cases to its normal review track, this source noted.

Announced on 18 November 2025, the all-share Axalta/AkzoNobel transaction would combine two major global coatings manufacturers to create a company with an enterprise value of approximately USD 25bn, at the time of announcement. AkzoNobel and Axalta reiterated in the June proxy filing that they expect to close the deal in late 2026 or early 2027.

The merger agreement includes an initial long-stop date on 18 May 2027, which can be extended to 18 November that same year.

The deal is likely to have attracted SAMR’s attention because of the parties’ horizontal overlap across several coating segments within performance coatings. In its latest annual report, Axalta identified AkzoNobel as a direct competitor in both refinish and industrial coatings. The report also noted competition between the two companies in vehicle coatings.

Headquartered in Amsterdam, AkzoNobel manufactures decorative paints and performance coatings. Its performance coatings business includes powder coatings, marine and protective coatings, automotive and specialty coatings, as well as industrial coatings. In China, the company operates 15 manufacturing facilities, a technology centre and a nationwide network of sales offices, AkzoNobel China President Yin Tao told Chinese newspaper Economic Daily in a June 2026 interview.

Philadelphia-based Axalta supplies both performance coatings and mobility coatings. Its performance coatings portfolio includes refinish and industrial coatings, while its mobility coatings business serves light-vehicle and commercial-vehicle manufacturers. Axalta also operates a technology centre in China. The company’s China revenue reached USD 614m in 2025, representing approximately 12% of total sales.

AkzoNobel ranked third and Axalta sixth in China’s industrial coatings market by sales revenue in 2025, according to a trade media report earlier this month.

As per a separate media report in April last year, foreign suppliers collectively account for more than 80% of the country’s vehicle coatings market. Axalta reportedly held a 13.8% share of the Chinese vehicle coatings market in 2024, ranking third, while AkzoNobel ranked seventh.

Both companies are global leaders in the powder coatings sector. In China, however, the powder coatings market remains highly fragmented. Even AkzoNobel, reported to be the largest supplier in the segment, had a market share of only 3.28% in 2021.

The deal was notified to the European Commission on 17 September, and the UK Competition and Markets Authority launched a Phase I probe on 16 September. The deal has already received a conditional clearance in South Africa and unconditional approvals in Taiwan, Australia and Brazil.

The deal is also subject to antitrust approval in the US and clearance under the EU Foreign Subsidies Regulation (FSR). And notification for the latter was submitted on 14 September.

AkzoNobel and Axalta did not respond to requests for comments.

SAMR does not comment on ongoing deals.