BASF and Carlyle have reached a binding agreement to create a global standalone coatings business. The global enterprise value of the transaction is €7.7 billion, expected to close in Q2 2026. BASF will reinvest, holding a 40% equity stake, and receive approx. €5.8 billion in pre-tax cash proceeds. The India automotive coatings business generated sales of Rs.479.6 crore, representing 3.1% of consolidated sales.
Global Coatings Business Transaction
BASF has reached a binding transaction agreement with Carlyle to create a global standalone coatings business. This agreement follows an earlier announcement on September 26, 2024, regarding strategic options for its coatings business.
Key Transaction Details
The global enterprise value of the transaction is valued at €7.7 billion and is projected to be finalized in Q2 2026, pending customary regulatory approvals. BASF will maintain a 40% equity stake in the coatings business and will receive approximately €5.8 billion in pre-tax cash proceeds upon the transaction’s closing.
Impact on Indian Operations
In India, the automotive OEM coatings and automotive refinish coatings business was transferred to BASF India Coatings Private Limited, a wholly-owned subsidiary of BASF India Limited, effective January 1, 2025. This business previously operated under the Surface Technologies segment of BASF India Limited. As of March 31, 2025, the Coatings business generated sales of Rs.479.6 crore, which represents 3.1% of BASF India’s consolidated sales.
Future Outlook
BASF India Limited will evaluate and assess the implications of this global announcement on both BASF India Limited and its wholly owned subsidiary, BASF India Coatings Private Limited. Updates regarding further developments will be communicated to the stock exchanges as they occur.
Source: BSE
