The European Commission has approved German chemicals giant BASF's sale of its coatings business to US private equity firm Carlyle, subject to conditions.
Under the agreement, Carlyle must divest the global polysulfides business of speciality chemicals company Nouryon, which is part of Carlyle's investment portfolio, the commission said on Tuesday.
The remedy is intended to safeguard competition in aerospace sealants and in the market for polysulfides. Polysulfides are essential for manufacturing aerospace sealants, a market in which BASF Coatings is also active.
BASF and Carlyle announced the transaction in October.
The deal values the coatings business at €7.7 billion ($8.9 billion). The division includes automotive OEM and refinish coatings as well as surface-treatment technologies.
BASF plans to retain a 40% stake in the business and expects to receive €5.8 billion in cash before taxes from the transaction.