The European Commission has approved BASF’s sale of its coatings business to U.S. private equity firm Carlyle, subject to conditions.
Under the agreement, Carlyle must divest the global polysulfides business of specialty chemicals company Nouryon, which is part of Carlyle’s investment portfolio.
The conditional agreement is intended to safeguard competition in aerospace sealants and in the market for polysulfides. Polysulfides are essential for manufacturing aerospace sealants.
BASF and Carlyle announced the transaction in October.
The deal values the coatings business at $8.9 billion. The division includes automotive OEM and refinish coatings as well as surface-treatment technologies.
BASF plans to retain a 40% stake in the business.