News Markets & Companies
BASF gets green light for sale of coatings division to Carlyle
The European Commission has approved the sale of BASF’s coatings division to the investment firm Carlyle. However, the approval comes with strict conditions to prevent distortions of competition.
The transaction, which was announced back in October 2025, values the division at an enterprise value of EUR 7.7 billion. However, BASF will retain a 40% stake and will receive EUR 5.8 billion in cash before tax through the deal.
The business division includes automotive OEM and refinish coatings as well as surface treatment. The European Commission’s approval was, however, subject to one important condition: Carlyle must divest the worldwide polysulfides business of the specialty chemicals company Nouryon. Polysulfides are essential for the production of sealants in the aerospace industry, a market in which BASF Coatings is also active.
Safeguarding competition through conditions
The European Commission justified its decision by pointing out that Nouryon, one of the two global leading suppliers of polysulfides, holds considerable market power. Without the required divestment of the Nouryon business, the merged company could restrict other competitors’ access to these raw materials and use sensitive information to the detriment of the industry.
“The commitments are a decisive step in safeguarding competition in the aerospace and polysulfides sectors,” the Commission stated. The sale therefore not only strengthens BASF’s financial position, but also contributes to market stability and the promotion of innovation.
