AkzoNobel, Axalta set to win EU antitrust nod for $25 billion deal, sources say

By Foo Yun Chee

BRUSSELS, Oct 8 (Reuters) - Dulux paint maker AkzoNobel and US peer Axalta Coating Systems are set to win EU antitrust approval for their $25 billion merger with a pledge to sell AkzoNobel's vehicle refinish business to address competition concerns, people familiar with the matter said.

The companies announced the deal in November last year, underscoring a wave of consolidation among paint makers to save money in the face of rising costs and amid uncertainties created by US President Donald Trump's tariffs.

The European Commission, which is the EU competition enforcer, AkzoNobel and Axalta declined to comment.

The companies, which met with the EU watchdog on Wednesday to discuss the deal and possible remedies, will put in their offer next week. This will then extend the current Commission's October 22 deadline by 10 working days.

The EU regulator is expected to clear the deal after its preliminary review, the people said.

Earlier concerns about the overlaps in the powder coatings business have been resolved, leaving the vehicle refinish business as the only issue to be addressed, the people said.

Axalta exclusively makes coatings, with a strong presence in the US market. Rivals to the companies include BASF's coatings business, Nippon Paint, Sherwin-Williams and Kansai Nerolac.

(Reporting by Foo Yun Chee; Editing by Jan Harvey)