BASF has officially initiated the sales process for its construction coatings business in Brazil and is examining further strategic options for its entire coatings business. A company spokesperson confirmed this on Monday. In addition to potential partnerships, the company is also considering changed ownership structures, as indicated during the Capital Markets Day in September.

According to information from the Frankfurter Allgemeine Zeitung (FAZ), the first bidding round for the consumer-related segment of wall and door paints has been opened. BASF has sent so-called teasers—initial informational materials—to potential interested parties. The deadline for non-binding offers runs until the second half of February.

The valuation of the Brazilian business is estimated at a billion amount. Meanwhile, according to FAZ, BASF is preparing the sale of the significantly larger remaining coatings business, with a market entry expected in the second quarter. Investment banks JP Morgan and Bank of America are advising the process but declined to comment.

A study by JP Morgan values the coatings business without architectural paints at 5.75 billion euros, while architectural paints were valued at 900 million euros. Market observers expect the final sale prices to exceed these estimates, as bidders typically pay premiums in such auctions.