Axalta Coating Systems (AXTA.US) saw its shares surge approximately 10% in pre-market trading on Tuesday following the announcement of an all-stock merger with AkzoNobel. The deal will create a global coatings giant valued at around $25 billion.

The merger, expected to close between late 2026 and early 2027, will result in AkzoNobel shareholders owning 55% of the combined entity, while Axalta investors will hold the remaining 45%. The new company is projected to generate annual revenues of approximately $17 billion and achieve $600 million in cost synergies, with 90% of the benefits anticipated within the first three years.

Post-merger, the company will list on the New York Stock Exchange under a new name and ticker symbol, having previously maintained dual listings in the U.S. and Europe. It will retain its dual-headquarters structure in Amsterdam and Philadelphia.

Greg Poux-Guillaume, CEO of AkzoNobel, will lead the combined entity, which will boast a robust portfolio of over 100 brands, supported by 173 manufacturing facilities and 91 R&D centers worldwide.