FRANKFURT Oct 10 (Reuters) - BASF has agreed

to sell a majority stake in its coatings business to private

equity firm Carlyle and the Qatar Investment Authority,

valuing the unit at 7.7 billion euros ($8.91 billion).

In a joint statement, the companies said on Friday that BASF

would retain a 40% stake in the coatings business and that it

would also receive a pre-tax cash inflow of about 5.8 billion

euros on completion of the transaction.

BASF put the coatings division up for sale at the start of

the year, part of a wider strategy to focus on businesses that

are closely integrated and physically connected within its major

chemical plants across the globe.

BASF said that the transaction - when combined with the sale

earlier this year of its decorative paints business to

Sherwin-Williams ( SHW ) - values BASF's entire coatings division at an

enterprise value including debt of 8.7 billion euros, or about

13 times 2024 earnings before interest, tax, depreciation and

amortisation (EBITDA).

The chemical company started approaching the market in the

second quarter to explore strategic options for its remaining

coatings activities, and was targeting a decision in the last

quarter of the year.

It has said proceeds from a potential divestment could

enable an earlier start to a previously announced share buyback

of at least 4 billion euros between 2027 and 2028.

($1 = 0.8642 euros)