BASF Launches Second Round of Bidding for Its Coatings Business

BASF has officially launched the second round of bidding for its coatings business, with selected bidders expected to submit offers in August 2025. The division is valued at approximately €6 billion (around $6.8 billion), drawing significant interest from both financial and strategic buyers.

Notably, private equity firm Carlyle Group is reportedly forming a joint bidding consortium with U.S.-based paint manufacturer Sherwin-Williams. Other private equity contenders advancing to the next stage include KPS Capital Partners, Lone Star Funds, and Platinum Equity. Among all the participants, Dutch coatings giant AkzoNobel stands out as the only remaining strategic bidder, aiming to leverage the acquisition for market expansion and operational synergies. The deal is being advised by Bank of America and J.P. Morgan. According to sources familiar with the matter, some bidders may still withdraw, and BASF reserves the right to retain the business depending on final offers.

The coatings division generated around €4.3 billion in sales in 2024. Earlier this year, BASF sold its Brazil-based coatings business to Sherwin-Williams for $1.15 billion, as part of a broader effort to restructure and relieve earnings pressure. Under the leadership of CEO Markus Kamieth, who took over in 2023, BASF has been undertaking a strategic overhaul in response to high structural costs in Germany and weakening demand in key markets like China. The divestment aligns with the company’s wider plan to streamline operations, sharpen its focus on core businesses, and unlock value. Amid global economic headwinds and rising geopolitical uncertainty, this transaction could reshape the competitive landscape of the global coatings industry.