UK watchdog flags competition concerns in AkzoNobel-Axalta deal

Britain’s Competition and Markets Authority raised competition concerns Wednesday regarding the $25 billion merger between Dutch paint manufacturer AkzoNobel and U.S.-based Axalta, giving the companies until November 18 to propose remedies or face an in-depth investigation.

The companies announced the merger in November 2025 amid a wave of consolidation in the coatings sector, which faces rising costs and uncertainties from US tariffs.

The CMA’s initial investigation found the merger would create a market leader in the UK vehicle refinish coatings sector, which supplies paints to repair centers and bodyshops. The combined entity would control 40% to 50% of UK market supply.

The regulator determined that both companies compete closely in the UK market, offering similar products and technical support while maintaining extensive approvals from vehicle manufacturers and insurers.

The CMA warned that eliminating this competition could result in higher prices or reduced quality and support for customers.

AkzoNobel and Axalta said they plan to address the CMA’s concerns using the same remedy proposal included in the European Commission’s decision. The companies said they remain confident of completing the merger by early 2027.

The European Union approved the merger last week after AkzoNobel agreed to divest its vehicle refinish coatings business in Europe and the UK.