Sika-MBCC Proposal to Divest Some Assets After Merger Accepted by UK Antitrust Body

By Mauro Orru

The U.K.'s competition watchdog accepted a proposal from Sika AG and MBCC Group to sell some of MBCC's assets, a move that the regulator says would prevent their merger from harming the British construction industry.

The Competition and Markets Authority said Thursday that the companies proposed to sell MBCC's chemical admixtures business in the U.K., Europe and other countries, including its central research and development assets.

"The proposals agreed today will maintain the level of innovation, services and quality in chemical admixtures available to concrete producers and help prevent this deal raising prices for the construction industry in the U.K.," said Richard Feasey, independent CMA panel chair.

Swiss chemicals company Sika said in November last year that it would acquire MBCC from an affiliate of Lone Star Funds, in a transaction with an enterprise value of 5.5 billion Swiss francs, equivalent to some $5.99 billion at the time.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

12-15-22 0232ET