EU Commission Conditions Approval of Carlyle’s Acquisition of BASF Coatings

The European Commission has approved, under the EU Merger Regulation, the acquisition of BASF SE’s coatings division by The Carlyle Group, but only after Carlyle agrees to divest Nouryon’s worldwide polysulfides business. The deal, notified on 8 April 2026, raised concerns that merging BASF Coatings and Nouryon could limit access to polysulfides for aerospace sealants—a critical, non‑substitutable input—and give the combined entity an unfair competitive edge. Carlyle’s commitment to sell Nouryon’s Greiz plant and related assets removes the vertical link between polysulfides production and aerospace sealant manufacturing. An independent trustee will monitor compliance, and the Commission will evaluate potential buyers under a separate approval procedure. The decision, made after a 35‑day review, lifts the competition concerns in the European Economic Area.

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