What specific condition did the EU impose for approving Carlyle's acquisition of BASF's coatings business?

The EU Commission conditionally approved the acquisition only if Carlyle fully divests Norac's entire global polysulfide rubber business — including its Greiz (Germany) production site, associated equipment, intellectual property, long-term supply agreements, and technical staff — to a buyer with proven industrial chemical operational capability or relevant investment experience, under the supervision of an EU-appointed independent trustee and subject to prior EU approval of the buyer's qualifications.

Why did the EU identify vertical monopoly risks in this deal, and what were the two main concerns?

The EU identified two key vertical monopoly risks: first, post-acquisition, the combined entity would control polysulfide rubber — a critical raw material for aerospace sealants — through Carlyle's existing ownership of specialty chemicals leader Nouryon (referred to as 'Norac' in the text), enabling it to foreclose competitors' access to this essential input in the European Economic Area; second, Carlyle could misuse Nouryon's confidential commercial information about rival sealant manufacturers to unfairly advantage BASF Coatings, thereby distorting fair competition in the aerospace sealants market.

EU Conditionally Approves Carlyle Acquisition of BASF Coatings Business

Jun 8, 2026

The EU Commission conditionally approved Carlyle Group's acquisition of BASF's global coatings division, requiring the divestiture of Nouryon's polysulfide rubber business to prevent supply chain monopolies in aviation sealants.

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