The UK Competition and Markets Authority has opened a formal Phase 1 investigation into the proposed $25 billion combination of Dutch paint manufacturer AkzoNobel and US coatings producer Axalta Coating Systems. Following the receipt of formal notice from both parties, the antitrust regulator initiated its assessment under the Enterprise Act 2002 to determine whether merging the maker of Dulux paint with Axalta would cause a substantial lessening of competition within the UK market.
The watchdog established its statutory timetable after an initial information-gathering period and a public call for comments conducted earlier this year. The CMA set November 11, 2026, as the deadline for its Phase 1 decision, at which point it will decide whether to clear the transaction or refer the merger for an in-depth Phase 2 review.
Alongside the regulatory proceedings, AkzoNobel and Axalta announced refinements to the corporate governance framework of the combined entity to address shareholder feedback ahead of extraordinary general meetings scheduled for August 5, 2026. The updated terms shorten the transition period for board re-elections, requiring all directors to stand for annual re-election starting three years after completion rather than the five years originally planned.
Additionally, during the initial three-year post-merger phase, the board approval threshold for major structural decisions—including the appointment or removal of the CEO, Deputy CEO, and CFO, as well as changes to executive compensation policies—has been reduced from 75% to a two-thirds majority of non-executive directors. Both companies confirmed that these governance adjustments increase board accountability while maintaining the transaction’s equal-partnership structure, allowing shareholder votes to proceed as scheduled without requiring changes to the proposed Articles of Association.
