Sou Hu Cai Jing·2025-10-07 13:32Core Viewpoint - Carlyle Group is set to acquire BASF's coatings business for approximately €7 billion ($8.17 billion or ¥58.2 billion), marking a record for M&A in the chemical industry this year and raising concerns about the restructuring of the global coatings industry [1][3]. Company Summary - Carlyle's bid exceeds that of other financial investors interested in BASF's coatings division, which has over 10,300 employees and generated €3.8 billion in revenue last year, primarily from automotive coatings [1][3]. - BASF has been exploring strategic options for this business since the second quarter and plans to make a decision by the end of the year [1][3]. - The potential sale could enable BASF to initiate a previously announced stock buyback of at least €4 billion ahead of schedule [3]. Industry Summary - The global coatings market is characterized by "head concentration and regional dispersion," with major players like AkzoNobel and PPG competing against local firms [3]. - Carlyle's acquisition could strengthen its position in the high-end market through capital operations and resource integration [3]. - Analysts predict that Carlyle may drive synergies between BASF's coatings business and its existing portfolio, potentially linking automotive coatings technology with the new energy vehicle supply chain and expanding into emerging markets in Asia-Pacific [3]. Competitive Landscape - Other strategic buyers such as Sherwin-Williams, PPG, AkzoNobel, Nippon Paint, and Axalta may also play a role in the acquisition process, although Carlyle is currently the leading bidder [6][11]. - The coatings division's last year's sales were approximately €4.3 billion, with around 12,000 employees, indicating its significant market presence [6]. - Regulatory challenges, particularly antitrust scrutiny, may impact the acquisition, given BASF's substantial market share in Europe and North America [4][11]. Financial Implications - The funds from the sale could be used for early stock buybacks and portfolio realignment for BASF [11]. - Private equity firms like Carlyle can act more swiftly than strategic buyers, facing fewer constraints related to product overlap or integration issues [10].