November 25, 2025 | Industrials | North America | Active
On 18-Nov-25, Dulux owner Akzo Nobel (“AkzoNobel”) entered into a definitive all-share merger-of-equals with US rival Axalta Coating Systems (“Axalta”) to create a $25bn paint and chemicals group. The merger, unanimously approved by AkzoNobel’s supervisory and management boards and by Axalta’s board, is structured as a merger under the Bermuda Companies Act, whereby Axalta shareholders will receive 0.6539 AkzoNobel shares per Axalta share, “at no premium.” Axalta does not pay out any dividends, and AkzoNobel intends to continue distributing regular dividends through deal completion, in-line with its current policy. Critically, prior to closing, AkzoNobel will pay its shareholders a special dividend (“pre-completion distribution”), essentially a top-up payment to ensure that from the merger announcement to completion, AkzoNobel distributes €2.5bn in aggregate, consisting of a mix of its ordinary dividends and the special distribution. Specifically, the “pre-completion distribution,” approximately €14.62 per share, will be reduced by the aggregate amount of AkzoNobel’s regular and interim dividends with 2026 record dates that fall prior to the record date for that distribution (in total, €2.00 per share per Bloomberg). Beyond the special and regular dividends, no other distributions are expected from either company before completion, and both have suspended share repurchase programmes with immediate effect. While headquartered in Philadelphia, PA, Axalta is incorporated in Bermuda. Under the Bermuda statutory merger agreement, the transaction is subject to shareholder approval on both sides, with EGMs anticipated for mid-2026. At Axalta, we expect a ...
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