The Competition and Markets Authority has found a realistic prospect that the proposed AkzoNobel-Axalta merger could substantially lessen competition in a UK coatings market.
Its phase-one assessment focused on vehicle-refinish coatings, where the companies would have a combined share of supply estimated at 40 to 50 per cent. The authority said remaining rivals would not sufficiently replace the lost competition, particularly at the premium end, leaving customers exposed to higher prices or weaker quality and support.
The CMA did not identify the same level of concern in thermosetting powder coatings across the UK and European Economic Area. It also found insufficient evidence of likely coordinated effects in either market.
This is not a final prohibition. The parties have until 18 November to offer undertakings capable of resolving the vehicle-refinish concern. Without acceptable remedies, the transaction will be referred for an in-depth phase-two investigation under the Enterprise Act.
