Core Insights - BASF has entered into a binding agreement with Carlyle Group and Qatar Investment Authority (QIA) to acquire BASF's automotive coatings, repair paints, and surface treatment business for an enterprise value of €7.7 billion (approximately ¥60 billion) [3][4] - This acquisition is part of BASF's strategy to enhance profitability and streamline operations, following the sale of its Brazilian decorative coatings business for $1.15 billion earlier this year [4][5] - The overall valuation of BASF's coatings division, after this transaction and the completed decorative coatings divestiture, is estimated at €9.7 billion, with an enterprise value multiple of approximately 13 times [5] Group 1: Acquisition Details - The acquisition involves BASF's coatings business, which has a projected sales revenue of approximately €3.8 billion in 2024, covering markets in Europe, North America, South America, and Asia-Pacific [4] - Carlyle Group, established in 1987, manages $465 billion in assets and has invested over $10 billion in China since entering the market in 1998 [4][12] - The deal is expected to close in the second quarter of 2026, pending regulatory approvals, with BASF retaining a 40% stake in the coatings business and receiving approximately €5.8 billion in pre-tax cash proceeds upon completion [5] Group 2: Market Context - The acquisition is seen as a significant move in the context of increasing competition and changing market demands within the coatings industry [4][12] - Carlyle's strategy aligns with a broader trend among private equity firms to seek opportunities for acquiring undervalued assets, particularly in the current market environment [13][14] - The private equity market is experiencing a shift, with fewer public companies and an increase in private firms, creating a favorable landscape for strategic acquisitions [13]