Two majors players in the automotive refinish space are considering a “merger of equals.”

AkzoNobel and Axalta Coating Systems confirmed that the companies are engaged in “constructive discussions” regarding a merger of AkzoNobel’s Paints & Coatings unit with Axalta.

“This will create a leading global paints and coatings company through a merger of equals,” Amsterdam-based AkzoNobel said in a news release.

Philadelphia-based Axalta said the company will pursue the merger “only if its board of directors determines that it is in the best interest of Axalta to do so.”

“There can be no assurances that a definitive agreement between the parties will be reached or on what terms,” the company added.

AkzoNobel noted that the separation of its Specialty Chemicals business unit, “including the return of the vast majority of net proceeds to shareholders, remains on track for April 2018 and is unaffected by the discussions.”