Global law firm Freshfields has advised BASF on entering into a binding agreement relating to its automotive OEM coatings, automotive refinish coatings, and surface treatment businesses (“BASF Coatings”) with funds managed by global investment firm Carlyle (NASDAQ: CG). The enterprise value of the transaction amounts to €7.7bn.

Subject to customary regulatory approvals, the transaction is expected to close in Q2 2026. BASF will receive pre-tax cash proceeds of approx. €5.8 billion at closing of the transaction and will continue to hold a 40% equity stake in the coatings business post-closing.

BASF Coatings is a global player in the development, production and marketing of innovative and sustainable automotive OEM and refinish coatings as well as applied surface treatments for metal, plastic and glass substrates in a wide range of industries. The business operates in Europe, North America, South America and Asia Pacific, and generated sales of approx. €3.8 billion in 2024.

The transaction was accompanied by Dr. Michael Winter and Dr. Sophie Stüben (both Corporate/M&A) as well as Stephan Purps (Antitrust Law) from BASF's legal department.

The Freshfields core team consisted of Partners Rick van Aerssen (Corporate/M&A, Frankfurt/Düsseldorf) and Maximilian Lasson (Corporate/M&A, Munich), Counsel Judit Gajdics, Principal Associate Sandra Jung, Associates Samuel Schulze and Julius Raddatz (all Corporate/M&A, Munich). The team further comprised:

• Partners: Frank Röhling (Berlin), Rafique Bachour (Brussels, both Antitrust Law), Norbert Schneider (Düsseldorf), Claude Stansbury (Washington, both Tax), Frank Schaer (Frankfurt), Thomas Granetzny (Düsseldorf), Christel Cacioppo (Paris, all Employment Law), Michael Ramb (Regulatory, Düsseldorf/Berlin)
• Counsel: Marius Scherb (Commercial, Hamburg)
• Principal/Senior Associates: Thomas Richter (Tax, Düsseldorf), Johanna Hirth (Employment Law, Frankfurt), Sebastian Breder (Real Estate, Frankfurt), Jonas Köster (Regulatory, Düsseldorf), Célia Kirren (Employment Law, Paris)
• Associates: Valentin Bingger, Julia Suttrup (both Commercial, Hamburg), Christopher Sickinger (Berlin), Miriam Swamy-von Zastrow (Munich), Helena Haag (Berlin, all Antitrust Law), Armin Wulfinghoff (Tax, Düsseldorf), Lorena Faggioli (Employment Law, Frankfurt), Natalia Gegechkori (Real Estate, Frankfurt), Vinzent Will (Regulatory, Berlin)

Additionally, Professional Support Lawyer Inna Pustal (Frankfurt), Senior Transaction Lawyer Franz Dahl and Transaction Lawyer Stephan Clavien (both Hamburg) supported.