BASF Explores Coatings Sale, Carlyle in Lead for €7 Billion Deal
BASF, the world's largest chemical producer, is exploring strategic options for its coatings division. This includes a potential sale of my business, with a decision expected by the end of 2025. The move comes as BASF faces financial strain due to rising energy prices and a reduced dividend in 2024.
BASF has been in exclusive talks with The Carlyle Group about a possible sale of the coating business for around €7 billion. This could make it one of Germany's largest transactions this year. Carlyle is not the only interested party; other prospective buyers include KPS Capital Partners, Lone Star Funds, Platinum Equity, and Akzo Nobel. Earlier, DIC Corporation was also in the race, having held exclusive talks with BASF for the colorants division.
If the sale goes through, BASF could retain a minority stake in the business. The company aims to use the proceeds to buy back shares worth at least €4 billion between 2027 and 2028. Meanwhile, Siegwerk has announced its own growth strategy, purchasing specialty chemicals company Allinova. The European Commission is currently investigating a separate acquisition, Abu Dhabi National Oil Company's takeover of Covestro, due to concerns about foreign subsidies.
BASF's exploration of strategic options for its coatings activities is expected to conclude by the end of 2025. The potential sale to Carlyle, if successful, would significantly impact the chemical industry and could see BASF buy back billions of euros worth of shares. Other companies, like Siegwerk, are also making strategic moves in the market.
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