BASF SE has asked shortlisted bidders to submit second-round offers next month for its coatings division, which could be worth €6 billion (US$7 billion) or more, according to Bloomberg, citing people familiar with the matter.

Private equity firms Carlyle Group, KPS Capital Partners, Lone Star Funds, and Platinum Equity have advanced to the next phase, along with Akzo Nobel NV, which is the only industry player remaining. The sources noted that some bidders may still opt out, and BASF could ultimately decide to retain the unit. BASF is working with advisers from Bank of America and JPMorgan on the potential sale.

The coatings division recorded about €4.3 billion in sales in 2024. In February, BASF sold its Brazilian paint business to Sherwin-Williams for $1.15 billion and has been exploring additional divestitures amid earnings pressure. CEO Markus Kamieth, who took over in 2023, is leading a broader organizational overhaul in response to high energy costs and weakening demand in markets like China.

This story was originally reported by Bloomberg, which attributes the information to people familiar with the matter.

Read more about mergers and acquisitions in the coatings industry.