BASF and Carlyle have finalized a binding agreement to establish a new global standalone coatings business, marking a significant development in the chemical industry. This strategic partnership between the chemical giant and the investment firm aims to create an independent entity focused on coatings operations.

Deal Structure and Valuation

The agreement encompasses BASF's automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. Key details of the transaction include:

Impact on BASF India Limited

The global deal has implications for BASF's Indian operations:

• BASF India Coatings Private Limited, a wholly-owned subsidiary of BASF India Limited, now houses the automotive OEM coatings and automotive refinish coatings businesses.
• This transfer was effective from January 1, 2025.
• As of March 31, 2025, the Coatings business in India generated sales of Rs. 479.60 crore, representing 3.10% of consolidated sales.

Investor Participation

The deal involves participation from global investment firm Carlyle (NASDAQ: CG) in partnership with Qatar Investment Authority (QIA).

Regulatory Approvals and Timeline

The transaction is subject to customary regulatory approvals and is expected to close in the second quarter of 2026.

Future Outlook

BASF India Limited has stated that it will evaluate and assess the effect of this global announcement on its operations and its wholly-owned subsidiary, BASF India Coatings Private Limited. The company has committed to updating the stock exchanges on further developments related to this strategic move.

This partnership between BASF and Carlyle represents a significant shift in the global coatings industry landscape, potentially reshaping market dynamics and competitive positioning in the sector.

BASF India Limited , a leading chemical company, has announced a strategic move to bolster its commitment to sustainable energy sources. The company's Board of Directors has approved the acquisition of a 26% equity stake in Clean Max Amalfi Private Limited, a special purpose vehicle (SPV) created by Clean Max Enviro Energy Solutions Private Limited.

Investment Details

The acquisition, valued at up to INR 65.93 crore, is aimed at procuring approximately 28,854 MWh of renewable power from solar and wind sources. This green energy will be utilized for BASF's manufacturing facilities in Dahej and Panoli through the Group Captive Power Generation Mechanism.

Renewable Energy Strategy

This move aligns with Gujarat's renewable energy policy and the Electricity Act 2003, showcasing BASF India's dedication to incorporating sustainable practices in its operations. The renewable power procurement is expected to significantly reduce the company's carbon footprint and contribute to its overall sustainability goals.

Transaction Details

The completion of the deal is subject to several conditions, including:

• Signing of definitive agreements:
  • Shareholders' Agreement
  • 25-year Power Purchase Agreement
• Obtaining necessary approvals
• Meeting other specified conditions

Implications for BASF India

This strategic investment represents a significant step for BASF India in diversifying its energy sources and reducing its reliance on conventional power. By securing a long-term renewable energy supply, the company is positioning itself to:

• Enhance its environmental sustainability profile
• Potentially reduce long-term energy costs
• Comply with evolving regulatory requirements for industrial energy consumption

Market Response

While the immediate market response to this announcement is not provided in the available data, such moves are generally viewed positively by investors and stakeholders who prioritize environmental, social, and governance (ESG) factors in their investment decisions.

Looking Ahead

As BASF India progresses with this acquisition, stakeholders will be keen to observe the impact on the company's operational efficiency and sustainability metrics. The success of this venture could potentially pave the way for similar initiatives across BASF's global operations, further solidifying its commitment to sustainable business practices.

The company will likely provide updates on the transaction's progress and its impact on BASF India's overall energy strategy in future communications to shareholders and the market.