What specific condition did the European Commission impose for approving Carlyle's acquisition of BASF Coatings?

The European Commission approved the acquisition only on the condition that Carlyle fully complies with its offered commitments, which require the divestiture of Nouryon Ltd.'s worldwide polysulfides business—including its Greiz, Germany plant (the sole manufacturer of Nouryon's polysulfides), all relevant assets, licenses, and contracts—to a suitable purchaser with proven expertise in the chemical industry or experience managing chemical companies.

Why did the European Commission have competition concerns about the proposed acquisition?

The Commission was concerned that the merged entity would foreclose competitors in the markets for polysulfides for aerospace sealants (where Nouryon is active) and aerospace sealants (where BASF Coatings is active), given that polysulfides are a critical, irreplaceable input for aerospace sealants, switching suppliers is costly and time-consuming, Nouryon is one of only two global suppliers, and the merged entity could misuse commercially sensitive information to disadvantage BASF Coatings’ rivals.

European Commission Conditionally Approves Acquisition of BASF Coatings by Carlyle

Jun 3, 2026

The European Commission approved Carlyle's €7.7 billion acquisition of BASF Coatings, conditional on divesting Nouryon's polysulfides business to address competition concerns in aerospace sealants.

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European Commission Conditionally Approves Acquisition of BASF Coatings by Carlyle

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