Feb. 17, 2016—AkzoNobel announced Wednesday an agreed offer to acquire BASF’s Industrial Coatings business for €475 million.

The transaction would include technologies, patents and trademarks, and securing supply to customers worldwide. BASF’s two manufacturing plants—one in the UK and one in South Africa—would also be transferred to AkzoNobel.

The deal does not involve BASF’s automotive coatings business.

"This proposed acquisition will strengthen our position in the important coil coatings market and fits well with our existing business, allowing us to offer essential solutions to our customers," said Ton Büchner, AkzoNobel CEO. "We are continuing to deliver on our strategy to achieve our vision of leading market positions delivering leading performance."

The transaction is expected to be completed in the second half of 2016 and is subject to regular consultation with employee representatives and satisfaction of certain closing conditions, including recipient of required regulatory approval.