EU clears Carlyle-BASF Coatings deal with conditions

Carlyle is a US-based global investment firm whose portfolio includes specialty chemicals company Nouryon. BASF Coatings, part of Germany-based BASF SE, develops and supplies automotive coatings, surface treatment solutions, and aerospace coatings and sealants.

The Commission’s investigation found that the transaction, in its original form, could have weakened competition in the aerospace sealants market. The concerns centred on Nouryon’s role as one of only two global suppliers of polysulfides used in aerospace sealants, while BASF Coatings is active in aerospace sealant production.

The EU competition authority noted that polysulfides are a critical raw material in aerospace sealants with no viable substitute, and that switching suppliers is both expensive and time-consuming for manufacturers. The investigation also indicated that the merged entity could potentially restrict competitors’ access to polysulfides or misuse commercially sensitive information obtained through Nouryon’s supply relationships.

To resolve these concerns, Carlyle committed to divesting Nouryon’s global polysulfides business, including the Greiz Plant that manufactures all of Nouryon’s polysulfides supply, along with related assets, licences, contracts and employees. Carlyle must also identify a purchaser with expertise in the chemical industry or relevant industrial qualification processes.

Following market feedback, the Commission concluded that the revised transaction would no longer raise competition concerns in the European Economic Area. The approval remains conditional on the complete implementation of the remedies, with an independent trustee overseeing compliance and the Commission separately approving the final buyer, according to the EU.

ALCHEMPro News Desk (JP)