AkzoNobel confirms merger talks with Axalta

Akzo Nobel has confirmed it is in "constructive discussions” regarding a merger between the AkzoNobel Paints & Coatings business and Axalta.

Such a move would create a leading global paints & coatings company through a merger of equals.

AkzoNobel also confirmed that its separation of Specialty Chemicals, which accounts for around a third of its sales and profit, remains on track for April 2018 and is unaffected by these discussions.

This will result in a company more focused on coatings, meaning a merger with Axalta, the No. 1 supplier to the North American heavy truck market, would round out its business to include vehicle coatings.

Earlier this year, the paint giant rejected a €26bn acquisition offer from U.S. rival PPG.

The proposed merger with Axalta, the former car paint unit of DuPont, is the first major partnership being pursued by Thierry Vanlancker, who took over as AkzoNobel CEO in July.