Diversified chemicals company BASF SE agreed to sell its construction chemicals unit to private equity firm Lone Star Funds in a transaction valued at €3.17 billion.

The deal, which is subject to regulatory approvals, is expected to close in the third quarter of 2020.

"Our aim was to find a new home for our construction chemicals business where it can leverage its full potential," said Saori Dubourg, member of the BASF board of executive directors.