The birth of a $25 billion paint giant! Axalta (AXTA.US) merges with Akzo Nobel in an all-stock deal.

As of Tuesday's pre-market deadline, the share price of Axalta Coating Systems (AXTA.US) has increased by about 10% following the announcement that the company will merge with AkzoNobel through an all-stock merger, creating a global coatings company worth approximately $25 billion. The merger is expected to be completed by the end of 2026 or early 2027, with AkzoNobel shareholders holding 55% of the new entity and Axalta Coating Systems investors holding 45%. The merged company plans to achieve annual revenue of around $17 billion and realize $6 billion in cost synergies, with 90% of the benefits expected to be achieved within the first three years. This new company will eventually be listed on the New York Stock Exchange under a new name and ticker symbol, following its previous dual listing in the United States and Europe. The company will maintain a dual headquarters in Amsterdam and Philadelphia. AkzoNobel CEO Greg Poux-Guillaume will lead the merged company. The merged company will have a strong product portfolio with over 100 brands and operate 173 manufacturing plants and 91 research facilities worldwide.