BASF to buy Albemarle's Chemetall coatings division for $3.2bn

German chemicals giant BASF said Friday it has agreed to purchase Chemetall, the surface treatment subsidiary of US group Albemarle, for $3.2 billion (2.8 billion euros).

BASF added in its statement that "the transaction is subject to approval by the relevant authorities and is expected to close by the end of 2016."

Chemetall is headquartered in Frankfurt and has a global workforce of around 2,500 at 21 production sites in more than 20 countries, BASF said.

In 2015, it generated sales of $845 million.

"Chemetall offers a strong strategic fit for our coatings business," said the board member for BASF's coating business, Wayne T. Smith.

"Chemetall complements our current portfolio by adding the highly attractive surface treatment business to our coatings offerings," said division chief Markus Kamieth.

Chemetall's products are used in a wide range of industries such as automobiles, aerospace and metal forming industries, BASF said.

BASF's coatings division generated annual revenues of 3.2 billion euros last year.

BASF shares were little changed on the Frankfurt stock exchange in mid-afternoon trading, rising just 0.07 percent to 67.89 euros, while the overall DAX index was up one percent.