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German chemical giant BASF SE announced Friday that it has struck a landmark deal to sell a majority stake in its coatings division to private equity powerhouse Carlyle Group Inc. and the Qatar Investment Authority (QIA) — a move that values the business at an eye-popping €7.7 billion ($8.9 billion).

Under the agreement, BASF will retain a 40% equity stake, while receiving €5.8 billion in pre-tax cash when the transaction closes. The sale marks one of BASF’s biggest strategic shifts in years, reflecting a broader industry trend toward portfolio streamlining and high-value partnerships.

A Global Transaction Poised to Reshape the Sector

The sale covers BASF’s automotive refinish coatings and surface treatment businesses for metal, plastic, and glass — technologies that play a key role in the automotive and manufacturing sectors worldwide.

The companies noted that the transaction, pending regulatory approvals, is expected to close by the second quarter of 2026, though details on which jurisdictions must sign off were not disclosed.

Freshfields LLP represented BASF, led by Rick van Aerssen, Maximilian Lasson, Judit Gajdics, Rafique Bachour, and Michael Ramb. Carlyle was counseled by Latham & Watkins LLP, with partners Shaun Hartley, Paul Sheridan, and Jeff Chenard among others. Counsel for QIA has not yet been revealed.

A New Era for BASF Coatings

In the joint statement, Carlyle executives Martin Sumner and Tanaka Maswoswe praised BASF Coatings as “an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint.”

Anup Kothari, BASF’s board member responsible for the coatings division, echoed the optimism:

“This transaction opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future.”

Operating across North and Latin America, Asia-Pacific, and Europe, BASF Coatings will continue to maintain its global presence while leveraging Carlyle and QIA’s investment power to expand innovation in the coatings and surface treatment sectors.

Headquartered in Ludwigshafen, Germany, BASF remains listed on the Frankfurt Stock Exchange, reinforcing its position as one of Europe’s most influential industrial players navigating a rapidly evolving global market.