The UK's Competition and Markets Authority (CMA) has found that AkzoNobel's planned $25 billion merger with Axalta could reduce competition in the UK, and will send the deal to an in-depth Phase 2 investigation unless the companies offer an acceptable fix. The CMA's Phase 1 decision, published on November 11, 2026, centres on vehicle refinish coatings, the paints body shops use to repair cars. The companies say they plan to offer the same remedy that won EU approval and still expect to complete the deal by early 2027.
CMA and AkzoNobel-Axalta, the key facts:
- Decision: the deal "may be expected to result in a substantial lessening of competition" in the UK, the CMA said.
- Market concerned: vehicle refinish coatings, where the combined company would supply an estimated 40% to 50% of the UK market, according to Investing.com's report of the CMA findings.
- Next step: the companies have until November 18 to offer remedies, or face Phase 2.
- Likely fix: selling AkzoNobel's vehicle refinish business in Europe and the UK, as agreed with the EU.
- Deal: an all-stock merger of equals announced in November 2025, valued at about $25 billion including debt.
What the CMA Decided
On its case page, the CMA said it "has decided, on the evidence currently available to it, that it is or may be the case that this merger" may be expected to result in "a substantial lessening of competition within a market or markets in the United Kingdom". It added: "This merger will be referred for an in-depth, phase 2 investigation unless the parties offer an acceptable undertaking to address these competition concerns."
According to Investing.com's report, the CMA found that AkzoNobel and Axalta compete closely in vehicle refinish, with similar products, technical support and approvals from carmakers and insurers. It warned that removing this competition "could result in higher prices or reduced quality and support for customers", meaning UK body shops and, indirectly, drivers and insurers.
What Happens Next
- By November 18, 2026: AkzoNobel and Axalta must offer undertakings (formal commitments) to address the concerns.
- CMA review: if the CMA believes the offer may be acceptable, it can consult on it instead of opening Phase 2.
- Otherwise: the deal goes to an in-depth Phase 2 investigation, which can take months and could delay completion.
The companies said they plan to offer the same remedy accepted by the European Commission, which cleared the merger the previous week after AkzoNobel agreed to sell its vehicle refinish coatings business in Europe and the UK. They said they "remain confident of completing the merger by early 2027".
About the AkzoNobel-Axalta Deal
AkzoNobel, the Dutch maker of Dulux paints, and Axalta, a US coatings company based in Philadelphia, announced an all-stock "merger of equals" on November 18, 2025. Key terms:
- Value: combined enterprise value of about $25 billion, with about $17 billion in revenue.
- Ownership: AkzoNobel shareholders about 55%, Axalta shareholders about 45%. Axalta holders receive 0.6539 AkzoNobel shares for each Axalta share.
- Base: dual headquarters in Amsterdam and Philadelphia, domiciled in the Netherlands, eventually listed only on the New York Stock Exchange.
- Leadership: AkzoNobel CEO Greg Poux-Guillaume to lead the combined company, with Axalta CEO Chris Villavarayan as deputy CEO.
- Synergies: about $600 million a year in pre-tax cost savings targeted.
Why Vehicle Refinish Matters
Vehicle refinish coatings are a specialist, high-margin business. Body shops need paints that exactly match carmakers' colours and are approved by insurers, which makes it hard for new suppliers to break in. With both companies among the leading suppliers, regulators in Brussels and London focused on this overlap. Selling AkzoNobel's European and UK refinish business is designed to keep a strong independent competitor in the market.
The case is a test of the CMA's post-Brexit approach: having aligned with the EU's remedy, a quick acceptance would suggest the UK regulator is willing to follow EU solutions where they address UK concerns.
For more on global markets and dealmaking, see our Markets & Finance coverage.
FAQs
Has the UK blocked the AkzoNobel-Axalta merger?
No. The CMA has raised concerns and will open an in-depth investigation unless the companies offer an acceptable remedy by November 18.
What remedy will AkzoNobel and Axalta offer?
They plan to offer the same remedy agreed with the EU: selling AkzoNobel's vehicle refinish coatings business in Europe and the UK.
When will the AkzoNobel-Axalta merger close?
The companies say they expect to complete it by early 2027.
Checked on November 11, 2026, against the CMA case page, Investing.com and the companies' November 2025 announcement. This article is not investment advice.