The UK Competition and Markets Authority (CMA) has identified a realistic prospect of substantially reduced competition in vehicle refinish coatings from the proposed merger of AkzoNobel and Axalta, though it found no significant competition concerns in thermosetting powder coatings and has not raised any marine antifouling issues.
The CMA announced its Phase 1 decision on 11 November 2026, estimating the combined business would hold 40% to 50% of UK vehicle refinish coatings supply. The regulator found the companies compete closely, particularly in premium products, and warned that reduced competition could lead to higher prices or lower quality and technical support for bodyshops and repair centres.
The companies have until 18 November 2026 to offer remedies. If none are submitted or the CMA considers them insufficient, the merger will proceed to a detailed Phase 2 investigation.
The European Commission granted conditional approval on 6 November 2026. The companies said the agreed remedy involves selling AkzoNobel's European vehicle refinish business, including its UK operations, and that they intended to use the same package to address CMA concerns. UK acceptance remains outstanding.
AkzoNobel's marine and yacht coatings brands include International, Awlgrip and Sea Hawk. The announced vehicle refinish disposal package does not identify these brands for sale, and the CMA evidence reviewed does not establish changes to marine product prices, availability or New Zealand distribution.
The companies announced their merger agreement on 18 November 2025, describing it as a merger of equals with an enterprise value of approximately US$25 billion. They have targeted completion by early 2027, but that date hinges on how the UK review concludes and on any other regulatory approvals still outstanding.
