BASF and Carlyle reach binding transaction agreement on coatings business to create a global standalone company

BASF SE, Germany (Ultimate Holding Company) has globally announced today that BASF and funds managed by global investment firm Carlyle (NASDAQ: CG), in partnership with Qatar Investment Authority (QIA), have entered into a binding agreement relating to BASF's automotive OEM coatings, automotive refinish coatings and surface treatment businesses. The global enterprise value of the transaction amounts to €7.7 billion and the transaction is expected to close in Q2 2026, subject to customary regulatory approvals. Further, BASF will reinvest in the coatings business holding a 40% equity stake and will receive pre-tax cash proceeds of approx. €5.8 billion at closing of the transaction.

In India, the automotive OEM coatings and automotive refinish coatings, was transferred to BASF India Coatings Private Limited, a wholly owned subsidiary of BASF India Limited, effective 1st January 2025. Prior to that, this business was housed under Surface Technologies segment of BASF India Limited. As of 31st March 2025, the Coatings business (consisting of automotive OEM coatings and automotive refinish coatings), generated sales of Rs.479.6 crore representing 3.1% of the consolidated sales.

Based on the above, the Company will evaluate and assess the effect of this global announcement on BASF India Limited and its wholly owned subsidiary, BASF India Coatings Private Limited.

Shares of BASF India Limited was last trading in BSE at Rs. 4588.70 as compared to the previous close of Rs. 4662.35. The total number of shares traded during the day was 438 in over 155 trades.

The stock hit an intraday high of Rs. 4670.40 and intraday low of 4581.00. The net turnover during the day was Rs. 2026417.00.

Source : Equity Bulls

Keywords

BASFIndia INE373A01013 SpecialtyChemicals BASFSE Germany Carlyle QatarInvestmentAuthority Agreement AutomotiveOEMCoatings