BERLIN — German chemical giant BASF said Saturday it has agreed to sell its construction chemicals business for 3.17 billion euros to American private equity firm Lone Star.

The deal, worth the equivalent of $3.5 billion, is expected to close in the third quarter of 2020 subject to the competition authority approval, BASF said in a statement.

It said the deal would allow it to develop its full potential under Lone Star, which owns several companies in the construction equipment sector.

The unit, which offers insulation products for the construction industry, has more than 7,000 employees, operates in over 60 countries and generated sales of about 2.5 billion euros in 2018.

The deal is part of the reorganization of the German group, which has seen falling sales and profits blamed on global trade woes and economic uncertainty.

In June, the company announced 6,000 job cuts by 2021 as part of a restructuring to save two billion euros in annual savings. — AFP