Akzo Nobel-Axalta Deal Wins Support of Activist Investor Cevian

Cevian Capital has thrown its support behind the proposed combination of Akzo Nobel NV and Axalta Coating Systems Ltd., saying the deal reflects the “significant value potential” from consolidation in the paint industry.

Akzo on Tuesday agreed to acquire smaller rival Axalta in a deal that will create a US-listed leader with combined annual sales of almost $17 billion. Amsterdam-based Akzo Nobel will own 55% of the combined entity, which will own brands ranging from Dulux to Cromax.

“While the all-stock merger gives away part of the value of Akzo Nobel’s significant standalone improvement potential to Axalta shareholders, we ...