Artisan Partners opposes Akzo Nobel-Axalta merger proposal

Artisan Partners Global Value Team, which manages approximately $35 billion in client assets, released a statement opposing the proposed merger between Akzo Nobel N.V. and Axalta Coating Systems Ltd. (NYSE: AXTA). The investment firm holds roughly 1.4 million shares of Axalta common stock through client accounts.

The two companies announced a definitive agreement to combine in an all-stock "merger of equals." Artisan Partners criticized the timing of the deal, noting that less than a month ago, Axalta executives highlighted the company's strong financial performance on a third-quarter conference call.

During that call, Axalta CEO Chris Villavarayan cited 12 consecutive quarters of adjusted EBITDA and margin growth year-over-year, net leverage maintained at 2.5 times, and plans to repurchase up to $250 million of stock in the fourth quarter. The company expected to deploy over 90% of free cash flow to share repurchases for the year.

Artisan Partners presented financial data showing Akzo Nobel's declining performance over multiple time periods. According to the firm's analysis, Akzo Nobel's revenue fell from €14.9 billion in 2015 to €7.8 billion year-to-date 2025, while adjusted earnings per share dropped from €4.02 in 2015 to €3.07 year-to-date 2025.

The investment manager characterized the transaction as "selling out of a cheap business that is performing well and taking the currency of a company that has never done well." Artisan Partners called for shareholders to reject the proposed merger and indicated interest in discussing alternative offers at higher valuations.

The statement was issued by the Artisan Partners Global Value Team, led by Managing Directors Daniel O'Keefe and Michael McKinnon.

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