Finance
Carlyle is front-runner to buy BASF's coatings business, says source
Published by Global Banking & Finance Review®
Posted on October 6, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on October 6, 2025
2 min readLast updated: January 21, 2026
Carlyle is leading the bid to acquire BASF's coatings business, valued at €7 billion, outbidding other firms. The sale could fund BASF's future share buyback.
BERLIN/LONDON (Reuters) -Private equity firm Carlyle is a front-runner in talks to take over the coatings business of German chemicals maker BASF, a source close to the matter told Reuters on Monday.
BASF wants to sell the business in a deal valuing it at roughly 7 billion euros ($8.17 billion), according to the Financial Times, which first reported that Carlyle had outbid other financial investors that had shown interest.
A spokesperson for BASF said it was company policy not to comment on market rumours or speculation.
Bloomberg News reported in May that the business had attracted early interest from CVC Capital Partners and Lone Star Funds, while private equity firms including Advent, Bain Capital, Blackstone and Platinum Equity were also planning to evaluate the business.
The BASF coatings division was put up for sale at the start of the year. The business, which has more than 10,300 employees and primarily produces automotive coatings, generated sales of 3.8 billion euros last year.
BASF started approaching the market in the second quarter to explore strategic options for its remaining coatings activities, with a decision expected in the last quarter of the year.
The company said proceeds from a potential divestment of the business could enable an earlier start to a previously announced share buyback of at least 4 billion euros between 2027 and 2028.
($1 = 0.8567 euros)
(Reporting by Amy-Jo Crowley in London and Miranda Murray in BerlinEditing by David Goodman)
Private equity refers to investment funds that buy and restructure companies not listed on public exchanges. These investments are typically made by firms or funds that aim to improve the company's financial performance before selling it for a profit.
Mergers and acquisitions (M&A) involve the consolidation of companies or assets through various financial transactions. A merger is the combination of two companies, while an acquisition is when one company purchases another.
Corporate strategy is a company's overarching plan to achieve its goals and objectives. It involves decisions regarding resource allocation, market positioning, and competitive advantage to drive growth and profitability.
A coatings business specializes in producing protective and decorative coatings for various surfaces, including automotive, industrial, and consumer products. These coatings enhance durability and aesthetics.
A share buyback occurs when a company purchases its own shares from the marketplace, reducing the number of outstanding shares. This can increase the value of remaining shares and improve financial ratios.
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