BERLIN/LONDON, Oct 6 (Reuters) - Private equity firm

Carlyle is a front-runner in talks to take over the

coatings business of German chemicals maker BASF, a

source close to the matter told Reuters on Monday.

BASF wants to sell the business in a deal valuing it at

roughly 7 billion euros ($8.17 billion), according to the

Financial Times, which first reported that Carlyle had outbid

other financial investors that had shown interest.

A spokesperson for BASF said it was company policy not to

comment on market rumours or speculation.

Bloomberg News reported in May that the business had attracted

early interest from CVC Capital Partners and Lone Star

Funds, while private equity firms including Advent, Bain

Capital, Blackstone and Platinum Equity were also planning to

evaluate the business.

The BASF coatings division was put up for sale at the start

of the year. The business, which has more than 10,300 employees

and primarily produces automotive coatings, generated sales of

3.8 billion euros last year.

BASF started approaching the market in the second quarter to

explore strategic options for its remaining coatings activities,

with a decision expected in the last quarter of the year.

The company said proceeds from a potential divestment of the

business could enable an earlier start to a previously announced

share buyback of at least 4 billion euros between 2027 and 2028.

($1 = 0.8567 euros)