Dec 21 (Reuters) - Private equity firm Lone Star has entered a deal to buy BASF's construction chemicals business for 3.17 billion euros ($3.5 billion) on a cash and debt-free basis, the German chemicals company said on Saturday as it seeks to focus on more profitable operations.
The deal, which has immediate effect upon BASF's reporting, is expected to close in the third quarter of 2020, according to the statement.
Reuters reported last month that Lone Star was in negotiations to buy the BASF unit. ($1 = 0.9027 euros)
Reporting by Kanishka Singh in Bengaluru; Editing by Stephen Coates