Recent news has emerged that Dutch paint giant AkzoNobel has shown strong interest in the coatings division of German chemical company BASF, and may be planning a potential acquisition. Both Dutch and German business media outlets, Het Financieele Dagblad and Deutsche Presse-Agentur (dpa), have reported on this news and the related developments.
According to Het Financieele Dagblad, three sources have stated that AkzoNobel is "very interested" in BASF's coatings division. However, it remains uncertain whether AkzoNobel will actually participate in the bidding.
From a financial perspective, the acquisition price for BASF’s coatings division is estimated to be around 6 billion euros, while AkzoNobel’s market capitalization was just over 9 billion euros last Monday. Even if AkzoNobel plans to sell its businesses in India, Pakistan, and Sri Lanka to raise approximately 1.3 billion euros, the group would still need to take on debt to fund the acquisition. Furthermore, news has already emerged earlier this year that after a lackluster performance in 2024, AkzoNobel expects the market to remain weak this year, and is further reducing expenses, including previously laying off 2,000 employees. One source revealed to Het Financieele Dagblad that BASF's coatings business is "a perfect fit" for AkzoNobel. BASF is the world's largest manufacturer of automotive coatings, and its coatings division holds a significant position in automotive refinish paints and metal pre-treatment. AkzoNobel's coatings business primarily serves the industrial market, with involvement in the marine and automotive sectors, as well as producing powder coatings.
dpa’s report indicates that AkzoNobel CFO Maarten de Vries declined to comment on the potential acquisition of BASF’s coatings division when quarterly results were announced last Wednesday. Meanwhile, a female spokesperson for BASF stated that the company is studying strategic options for its remaining coatings business. Currently, many strategic buyers, private equity firms, and consortiums have shown strong interest in BASF's coatings business.
dpa analysis suggests that BASF is currently undergoing a corporate restructuring phase. Recently, BASF sold its Brazilian architectural coatings business to the US-based Sherwin-Williams Group for $1.15 billion and announced plans to explore further strategic options for its remaining coatings business (including automotive OEM coatings, automotive refinish paints, and surface treatments) in the second quarter of 2025. Private bank Berenberg’s analyst Sebastian Bray estimates the valuation of this portion of BASF’s coatings business to be between 4 billion and 4.5 billion euros.
In September last year, BASF CEO Markus Kamieth announced a significant restructuring plan aimed at helping the global chemical giant overcome its difficulties. As part of the plan, certain business divisions of BASF will be sold, and its agricultural business will be listed on the stock exchange. Under the latest billion-euro savings plan, BASF’s Ludwigshafen chemical plant will undergo further layoffs, although the exact number of job cuts is still uncertain.
