June 6, 2025 – The global chemical industry is witnessing a significant merger and acquisition storm. The coatings business unit of German chemical giant BASF, valued at €6 billion, is set to change hands, triggering intense competition among global capital and industry giants. This deal is likely to be one of the largest industrial mergers and acquisitions in Europe in 2025, reshaping the global coatings industry landscape.
According to the Color Masterbatch Industry Network, BASF’s coatings business unit mainly includes automotive coatings, automotive refinish coatings, and surface treatment businesses, with sales of approximately $3.9 billion in 2024. This business holds an important position in the global coatings market, especially in the automotive coatings field, with significant technological advantages and market influence. Currently, coatings giants such as Sherwin-Williams, AkzoNobel, as well as private equity funds like Carlyle Group and CVC Capital have expressed acquisition intentions.
BASF’s asset divestiture plan began with a strategic adjustment at the end of 2023. Dr. Martin Brudermüller, the new CEO, proposed the “Way to Win” strategy, which clearly requires the company to focus on core businesses and optimize its asset portfolio. In February this year, BASF first sold its Brazilian architectural coatings business to Sherwin-Williams for $1.15 billion, paving the way for larger-scale transactions. Analysts point out that BASF’s decision to sell its coatings business in the current market environment is not only the implementation of the company’s strategy but also seizes the favorable opportunity of the recovery in demand in the automotive coatings market.
Among the potential buyers, Sherwin-Williams is regarded as the most competitive industrial acquirer. Since its acquisition of Valspar in 2017, the company has been seeking a breakthrough in the automotive coatings field. AkzoNobel hopes to make up for its shortcomings in the automotive coatings market through this acquisition, but its financial strength may become a restricting factor. Although Nippon Paint of Japan has not publicly stated its position, its acquisition records in recent years and its layout in the Chinese automotive coatings market make it a potential competitor that cannot be ignored.
It is worth noting that the involvement of private equity capital has made the transaction prospects more complex. Institutional investors such as the Carlyle Group may participate in the bidding in a cooperative model with industrial capital. Regardless of who eventually wins the bid, this deal will profoundly affect the competition pattern of the global coatings industry. The market expects that BASF will determine the preferred bidder in the coming months, and the final result of the transaction is expected to be announced by the end of 2025.