Akzo Nobel to Buy Axalta Coating Systems in All-Stock Deal
The companies refined governance arrangements following shareholder dialogue to create a premier global coatings entity.
Akzo Nobel N.V. (AXTA) agreed to acquire Axalta Coating Systems Ltd. (AXTA) in an all-stock merger of equals.
The companies recently announced enhancements to the proposed governance arrangements for the combined entity following extensive dialogue with shareholders and stakeholders. These refinements include the annual re-election of all directors after an initial three-year period, a change from the previously contemplated five-year window. Additionally, the approval threshold for certain key proposals—including the appointment of the CEO, CFO, and Deputy CEO—was lowered to two-thirds of non-executive directors from 75% during the first three years.
The combination is intended to create a premier global coatings company that delivers significant long-term value for all shareholders. Rakesh Sachdev, Chair of the Axalta Board of Directors, stated, “We believe these changes reinforce our commitment to strong corporate governance and effective Board oversight while further strengthening the governance framework of the combined company”.
Axalta is a global leader in the coatings industry, serving more than 100,000 customers in over 140 countries. Its business spans light and commercial vehicles, refinish applications, electric motors, and building facades, with a focus on preventing corrosion and enhancing durability.
The governance enhancements do not require changes to the proposed Articles of Association of the combined company. Consequently, the AkzoNobel EGM and Axalta SGM scheduled for August 5, 2026, are proceeding as planned with their existing agendas.