Germany's BASF sells Brazilian paint business

German chemicals giant BASF said Monday it will sell its Brazilian paint business for $1.15 billion (1.1 billion euros), as it seeks to slim down its operations amid an industrial slowdown.

Sherwin-Williams, an American company, will acquire the unit, which has about 1,000 employees, said the world's largest chemicals group.

The business was BASF's only one that sold to consumers rather than to industry, it said in a statement, adding that it had "limited synergies with other coating businesses within BASF."

The sale comes amidst a cost-cutting drive, with the chemicals giant seeking to strip out less profitable businesses after being battered by a combination of weak demand and higher energy costs following the outbreak of the Ukraine war.

Last September CEO Markus Kamieth told investors that BASF would focus on its "core businesses" in an effort to make annual savings of about 2.1 billion euros by the end of 2026.

Reporting third-quarter financial results in October, BASF warned "of risks from potential declines in prices and lower growth volume than expected" as its operating profit fell seven percent.

The deal is expected to close in the second half of 2025.

BASF said it would "further explore strategic options" for other parts of its coatings division.