AKZO NOBEL NV

AkzoNobel and Axalta have received conditional approval from the European Commission for their proposed all-stock merger of equals. The approval is subject to the divestment of AkzoNobel's European vehicle refinish business to address competition concerns. The merger is expected to close in early 2027, creating a global coatings company with approximately $17 billion in revenue and a comprehensive portfolio across various coatings segments. Both companies' CEOs expressed optimism about the milestone and the future combined entity's growth potential.

AkzoNobel N.V. announced that its shareholders, at an Extraordinary General Meeting, voted in favor of all resolutions related to the proposed all-share merger with Axalta Coating Systems Ltd. Concurrently, Axalta shareholders also approved the merger at their Special General Meeting. With these approvals, the merger can now proceed to its next phase, pending regulatory approvals and other customary closing conditions. The combined entity aims to become a stronger, more innovative global coatings leader, with completion anticipated by late 2026 or early 2027.

AkzoNobel and Axalta Coating Systems announced enhanced governance arrangements for their pending merger of equals. Following extensive shareholder dialogue, the companies agreed to annual re-election of all Directors after an initial three-year period, a reduction from the previously contemplated five years. Additionally, the approval threshold for certain key decisions, such as director appointments and CEO/CFO changes, has been lowered to two-thirds of Non-Executive Directors from 75% during the initial three-year period. These changes aim to strengthen corporate governance and align with shareholder interests, without affecting the upcoming EGM and SGM on August 5, 2026.

AkzoNobel reported a 1% decrease in Q2 2026 revenue to €2,589 million, primarily due to divestments and adverse currencies, despite a 2% organic sales growth driven by pricing. Operating income increased 17% to €251 million, and adjusted EBITDA rose 1% to €398 million, with the margin improving to 15.4%. The company expects full-year 2026 adjusted EBITDA to be at or above €1.47 billion and reiterated its mid-term targets, including the pending merger with Axalta expected in late 2026 or early 2027.

Akzo Nobel N.V. announced that its remaining operations in Russia have been fully localized and ringfenced. These operations are now functioning independently and do not receive financial support from the parent company. This move follows previous adjustments to its activities in the region.