Private investment major The Carlyle Group has emerged as the leading bidder to acquire the coatings business of BASF in a deal that could value the business at around €7bn, according to a report by Reuters citing an unnamed source familiar with the matter.
If agreed, the sale would mark one of the largest European chemicals deals of the year.
The coatings unit – employing more than 10,000 staff and generating €3.8bn in annual sales – primarily supplies automotive coatings. BASF launched the sale process earlier this year as part of a broader portfolio optimisation effort, with a final decision expected before the end of 2025.
Carlyle reportedly outpaced rival bidders including CVC Capital Partners, Lone Star Funds, and Advent International, all of which had expressed early interest. BASF declined to comment on what it described as “market speculation.”
Proceeds from a potential divestment could accelerate BASF’s planned €4bn share buyback, originally scheduled to begin between 2027 and 2028.
The deal would further extend Carlyle’s footprint in the European industrials and materials sector, following a series of recent platform acquisitions across chemicals and manufacturing.
