EU clears AkzoNobel and Axalta merger, but excludes paint division
The European Commission has authorized a merger between AkzoNobel and Axalta on the condition that AkzoNobel sells its European automotive refinish business. Regulators aimed to prevent price increases and reduced competition in the market for car repair coatings, where the two companies are currently major competitors.
The European Commission has approved the proposed merger between the Dutch company AkzoNobel and the American firm Axalta, provided that AkzoNobel divests its European automotive refinish coatings division. Regulators were concerned that the combination would significantly reduce competition in the repair paint market, where the top four players already control up to 90 percent of the market share. Because garages rely on specialized proprietary equipment and databases from their current suppliers to color-match damaged vehicles, a merger could have led to higher costs for repair shops and consumers.
To address these antitrust concerns, AkzoNobel has committed to selling its entire European automotive refinish unit, including intellectual property, personnel, and a production facility. The European Commission, represented by Vice-President Teresa Ribera, emphasized the importance of keeping repair costs affordable for families and commuters. The merger can only be finalized once a suitable buyer with relevant industry expertise is identified and approved by the commission to ensure market competition remains stable.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
