German industrial group BASF has fended off private equity competition to secure a deal to buy the construction chemicals business of rival German group Degussa for €2.8bn ($3.2bn).

Degussa confirmed today that it had agreed to sell the business in a deal valuing the division's equity at €2.2bn. The two entered exclusive negotiations two weeks ago. The transaction, which is expected to close by the middle of the year, includes €600m of debt.