BASF Moves Forward with €6 Billion Sale of Coatings Division as Second-Round Bids Expected in August

BASF SE has shortlisted potential buyers for its coatings division and has invited them to submit second-round bids in August. The business is valued at a minimum of €6 billion (US$7 billion).

Private equity firms Carlyle Group, KPS Capital Partners, Lone Star Funds, and Platinum Equity have advanced to the next round of bidding for BASF’s coatings division. Akzo Nobel NV remains the sole strategic bidder in the process. While discussions are ongoing, sources note that some bidders could still withdraw, and BASF may ultimately choose to retain the unit. Bank of America and JPMorgan are advising on the deal. The coatings division reported €4.3 billion in sales in 2024. This development follows BASF’s February sale of its Brazilian paint business to Sherwin-Williams for US$1.15 billion, as the company considers asset sales in response to ongoing earnings pressure.

Under the leadership of CEO Markus Kamieth, who took the helm in 2023, BASF is undergoing a strategic transformation to address structural cost pressures in Germany and softening demand from major markets such as China. The planned divestment of the coatings division is part of a broader initiative to streamline operations and unlock value as the company navigates global economic challenges and rising trade tensions.

Source: Bloomberg