New Delhi: The latest major move in the paint and coatings industry globally saw AkzoNobel announce its merger with Axalta to form a company worth almost US$25 billion. This will be among the largest mergers within the sector, bound to alter market aspects in many ways.
AkzoNobel is known by such brands as Dulux among others, while Axalta supplies car manufacturers with automotive paints. Joining the forces, the two companies want to strengthen their supply chain, create better products, and reduce competition.
The merger will save money for both companies by combining operations and sharing research. They can also target more customers in new regions. The companies said that together they can invest more in innovation and technologies to make eco-friendly and durable paints.
Analysts say this would exert more pressure on other paint companies across the globe. The two firms will enjoy a stronger presence in Asia, Europe, and the US in their combined entity. This might result in fresh pricing strategies and increased competition in the market.
The merger would also need regulatory clearance from various countries, which will look at whether the deal would affect competition and lead to monopoly-like situations. But both these firms are confident about the smooth passage of the deal.
