BASF has kicked off the sale process for its construction chemical business, the news agency Bloomberg has reported, and the German group meanwhile has confirmed contacts with selected potential buyers about a deal that analysts believe could be worth around €2.7 billion.

According to Bloomberg, private equity investors such as Bain Capital, Cinven and KKR, along with roofing materials specialist Standard Industries. In February this year, the Reuters news agency said Swiss building group Sika could be interested in parts of the business.

Sika is currently in the process of acquiring the Parex Group from CVC for 2.5 billion Swiss francs

BASF picked up the construction chemicals activities in 2006 from the former Degussa (now part of Evonik) during an expansion drive launched by former CEO Jürgen Hambrecht but is believed to have never been entirely happy with it.

At a strategy press conference in October 2018, new CEO Martin Brudermüller announced plans for a partnership or divestment of the business, which reported sales of €2.4 billion in 2017 and EBITDA of €245 million. CFO Hans Engels said earlier a deal would be completed sometime this year.