The United Kingdom's Competition and Markets Authority (CMA) has identified competition risks in the proposed $25 billion combination of Dutch paints maker AkzoNobel and U.S.-based coatings manufacturer Axalta, the regulator said on Wednesday. The CMA has set a deadline of November 18 for the two companies to propose remedies to address concerns or else face an in-depth investigation.
The merger, announced in November 2025, comes amid a period of consolidation across the coatings industry as firms contend with rising input costs and uncertainty tied to U.S. tariff policy. The CMA's preliminary review concluded that the transaction would create a market leader in the UK vehicle refinish coatings sector - the niche that supplies paints and related products to bodyshops and repair centres.
According to the regulator's initial findings, the combined AkzoNobel-Axalta business would account for roughly 40% to 50% of supply in the UK vehicle refinish market. The CMA noted that both companies currently compete closely in this market, offering comparable product lines, technical-services support and holding broad approvals from vehicle manufacturers and insurance companies.
In its assessment, the CMA warned that the removal of direct competition between the two suppliers could lead to worse outcomes for customers, specifically naming the potential for higher prices and for reductions in product quality or after-sales support.
AkzoNobel and Axalta have indicated they will rely on the same remedy package they used in submissions to the European Commission. The European Union granted approval last week after AkzoNobel agreed to divest its vehicle refinish coatings business in Europe and the UK.
The companies reiterated their expectation that the transaction can still close by early 2027, provided the outstanding regulatory issues are resolved. For now, they have until the mid-November deadline to put forward proposed fixes aimed at alleviating the CMA's competition concerns.
Context and next steps
- The CMA's next course is to review any remedies submitted by the parties by November 18 and determine whether to open a more detailed investigation.
- If the CMA proceeds to an in-depth phase, the merger's timetable could be extended while the regulator examines market effects and potential remedies more closely.
The CMA's intervention highlights regulator focus on concentration in specialised industrial markets where approvals and technical support create high barriers to entry. The outcome of the remedies process will determine whether the combined group can operate in the UK vehicle refinish sector with or without divestments or other behavioural commitments.