Germany's chemical giant BASF signed an agreement to acquire Albemarle's global surface treatment business, Chemetall. The purchase price is reported at $3.2 billion. The transaction is subject to approval by the relevant authorities and is expected to close by the end of 2016.

Chemetall is a global technology and innovation leader in the metals surface treatment market, and is headquartered in Frankfurt, Germany. It has approximately 2,500 employees globally, and operates 21 production sites in more than 20 countries, as well as 10 R&D locations and 24 sales offices. For the full calendar year of 2015, its sales were $845million.

"Chemetall offers a strong strategic fit for our coatings business, and supports BASF's aim to grow profitably in downstream ,innovation and solution-focused businesses," said Wayne T. Smith, member of the Board of Executive Directors of BASF SE, responsible for the Coatings division.

Chemetall develops and manufactures customized technology and system solutions for surface treatment. Their products protect metals from corrosion, facilitate forming and machining, allow parts to be optimally prepared for the painting process and ensure proper coating adhesion. These chemicals are used in a wide range of industries and end-markets, primarily automotive, aerospace, coil, and metal forming.