Axalta ting Systems .(US:AXTA) Sou Hu Cai Jing·2025-12-02 04:44Core Viewpoint - The merger between AkzoNobel and Axalta is set to create a leading global paint company valued at approximately $25 billion, significantly impacting the global coatings industry and its competitors [1][4]. Group 1: Merger Background - The merger discussions between AkzoNobel and Axalta date back to 2013, with AkzoNobel previously considering acquiring Axalta's high-performance coatings division [3]. - In 2017, AkzoNobel attempted to negotiate a merger with Axalta, but talks were halted due to Axalta's high asking price [3]. - Prior to the COVID-19 pandemic, Axalta was close to being acquired by PPG and private equity firm Clayton Dubilier for around $7.5 billion [4]. Group 2: Merger Details - The merger will be executed as an equal all-stock transaction, with AkzoNobel shareholders owning 55% and Axalta shareholders owning 45% of the new company [4][6]. - The combined sales revenue for 2024 is projected to be approximately $17 billion, positioning the new entity as the second-largest paint manufacturer globally, surpassing PPG [6][12]. Group 3: Market Position and Impact - The merger will create a company with a diverse product portfolio, including powder coatings, automotive coatings, and decorative paints, supported by 173 manufacturing plants and 91 R&D facilities globally [12]. - The new company will have a significant presence in key markets, particularly in automotive OEM coatings and automotive refinish markets, enhancing its competitive position [12][20]. - The merger is expected to reshape the competitive landscape, creating a leadership group of four major suppliers: Sherwin-Williams, PPG, AkzoNobel/Axalta, and Nippon Paint [19][20]. Group 4: Financial Performance and Projections - The projected revenue breakdown for the new company includes automotive refinish coatings at approximately $3.04 billion, decorative coatings at about $4.56 billion, and industrial coatings at around $3.04 billion [13][16]. - In the EMEA region, the new company is expected to generate about $7.27 billion, with significant revenue growth anticipated across all major regions [17][19].