Apparently, BASF is considering selling its coating business to Carlyle for around €7 billion – a move hoped to recoup funds in the wake of soaring energy prices.
As reported by the Financial Times, Carlyle succeeded over other private capital groups in an auction for the business unit and is now in ‘exclusive talks’ with BASF. A €7 billion sale is described as one of Germany’s largest transactions this year.
Still, spokespeople emphasize the deal has not been finalized and could still fall through. Other prospective buyers include a rival consortium led by KPS Capital Partners, as well as Lone Star Funds, Platinum Equity, and Azko Nobel.
European Coatings argues that selling the business to an investor is the most likely option – claiming that a BASF Coatings insider shares the same view – due to simpler logistics, fewer long-term obligations, and greater flexibility.
Whatever the outcome, BASF could still retain a minority stake as part of the agreement.
Energy prices have caused concern across Europe. The Financial Times suggests that BASF has faced monetary strain since the Russian invasion of Ukraine, with stock remaining low ever since – leading the company to cut its dividend by a third in 2024
Its coatings division generated sales of €3.8 billion last year, Reuters says. Proceeds from a potential divestment are anticipated to help BASF buy back shares worth at least €4 billion between 2027 and 2028.
In light of the sale, BASF is said to be approaching the market to explore strategic options for its ongoing coatings activities; a decision is expected by Q4 2025.
This summer, Siegwerk announced that it would purchase specialty chemicals company Allinova as part of its global growth strategy. Its portfolio includes adhesives, water-based dispersions, and wax emulsions – aligning with Siegwerk’s new global business unit for sustainability-minded packaging innovations.
In other news, the European Commission is investigating Abu Dhabi National Oil Company’s acquisition of Covestro in light of concerns that foreign subsidies, including an unlimited guarantee from the UAE and a committed capital increase by ADNOC into Covestro, could distort the EU’s internal market.
It is also introducing the Clean Industrial Deal, which is anticipated to help energy-intensive industries pursue decarbonization. Where high energy costs are concerned, its Affordable Energy Action Plan is attempting to lower prices and bills.
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