AkzoNobel and Axalta have agreed to merge in a $25 billion deal, creating a global paint and coatings giant with about $17 billion in annual revenue, a 20% profit margin target and $600 million in expected cost savings.

Today we look at the AkzoNobel–Axalta merger and what it could mean for traders across coatings, chemicals and industrial stocks on US markets.

WINNERS

Deal stocks and coatings peers

Names: Axalta Coating Systems ($AXTA), Akzo Nobel ADR ($AKZOY), PPG Industries ($PPG), Sherwin-Williams ($SHW)

Reason:

$AXTA and $AKZOY are at the centre of the deal, with investors betting on synergies, a single NYSE listing and a stronger global franchise. $PPG and $SHW can benefit from read-across as investors re-rate the whole coatings sector on consolidation, pricing power and margin potential. ...