Recent mergers and acquisitions reflect continued investment in chemical manufacturing, specialty products and industrial supply chains. BASF completed the sale of its coatings business while retaining a minority stake, Covestro expanded its production network for coatings raw materials through acquisitions in Thailand and Texas, Kano Laboratories expanded its specialty lubrication capabilities with the purchase of Triboscience & Engineering, and Yara agreed to acquire an ammonia production facility in Texas. Read more on these developments below.

BASF Completes Coatings Business Transaction with Carlyle

BASF announced June 30 it completed the sale of its coatings business to Carlyle after receiving all required regulatory approvals.

The transaction carries an enterprise value of €7.7 billion ($8.8 billion USD). BASF received approximately €5.8 billion ($6.63 billion) in pre-tax cash proceeds and retained a 40% equity stake in the newly formed company, Surventis, formerly BASF Coatings.

In a press statement, BASF said the transaction is part of its strategy to increase the value of standalone businesses while maintaining an ownership interest in the coatings business. The transaction includes the automotive OEM coatings, automotive refinish coatings and surface treatment businesses. BASF said its decorative paints business, which was sold separately in October 2025, brings the combined value of its former coatings division to €8.7 billion ($9.95 billion).

Covestro Expands HDI Production Network with Two Site Acquisitions

Covestro announced July 1 it completed the acquisition of two former Vencorex production sites for hexamethylene diisocyanate (HDI) derivatives in Rayong, Thailand, and Freeport, Texas.

HDI derivatives are used to manufacture polyurethane coatings, adhesives and sealants for applications including automotive, infrastructure, marine, wood furniture and electronics.

According to the company, the acquisitions expand Covestro's regional production network in Asia and North America, increasing production capacity and improving supply flexibility for customers in the coatings and adhesives markets. The sites complement Covestro's existing HDI derivatives manufacturing network in Europe, Asia and North America.

The company said the acquisition also supports its long-term investment in coatings and adhesives following its earlier acquisition of DSM's Resins & Functional Materials business.

Kano Laboratories Acquires Triboscience & Engineering

Kano Laboratories announced July 1 it acquired Triboscience & Engineering, a developer of specialty lubrication technologies for industrial and high-performance applications. Financial terms were not disclosed.

Founded in 2000, Triboscience & Engineering develops specialty oils, greases and lubrication systems for aerospace, medical devices, automotive, electronics and industrial manufacturing.

According to the company, Triboscience & Engineering will operate as Kano Laboratories' Advanced Lubrication Science & Engineering Division. Founder and President Paul Bessette will remain with the company to lead research and development. Kano said the acquisition expands its capabilities in specialty lubricants and strengthens its research and product development efforts for industrial applications.

Yara to Acquire Texas Ammonia Production Facility

Yara International announced July 2 that its U.S. subsidiary reached an agreement to acquire Gulf Coast Ammonia's production facility in Texas City, Texas, for $1.3 billion, subject to customary closing conditions and regulatory approvals.

The facility, which is currently being commissioned, has an expected nameplate production capacity of 1.3 million metric tons of ammonia annually. Air Products will continue supplying hydrogen, nitrogen and other industrial gases under a long-term agreement.

According to the company, the acquisition supports Yara's strategy to diversify energy sources and expand its ammonia production footprint in North America. Yara said it will use the facility to supply both external customers and its fertilizer production network through its existing ammonia distribution infrastructure. The company expects the plant to reach stable operations by the end of 2026.