Core Insights - BASF has entered into a binding agreement with Carlyle Group and Qatar Investment Authority (QIA) for the sale of its automotive coatings and surface treatment business, valued at €7.7 billion (approximately ¥63.44 billion), expected to close in Q2 2026 [2] - This transaction follows the sale of BASF's decorative coatings business in Brazil, Suvinil, and together, these projects value BASF's entire coatings division at €8.7 billion, with an enterprise value multiple of approximately 13 times [2] - The sale is part of BASF's strategic initiative to unlock value from its "self-owned business," while retaining a 40% stake in the coatings business and receiving about €5.8 billion in pre-tax cash proceeds upon completion [2] Business Operations and Future Plans - Carlyle will collaborate closely with BASF's management to enhance customer orientation and support the future development of BASF's coatings business through continuous investment in operational capabilities and innovation [3] - On October 8, BASF announced the launch of a new production line at its facility in Dilovası, Turkey, aimed at producing low VOC dispersions for construction coatings, addressing the growing demand in Turkey, the Middle East, and North Africa [3] - The new production line will utilize green electricity and a quality balance approach to reduce carbon footprint [3] Strategic Restructuring - BASF is simultaneously divesting from large-scale but potentially slow-growing or highly competitive end markets while concentrating resources on higher-margin specialty chemicals and green technologies [4] - The company is enhancing the resilience of its coatings raw material supply chain through expansions and upgrades at various sites in China, including Zhanjiang, Shanghai, Nanjing, and Chongqing [4]