MOSCOW (MRC) -- The Competition Bureau has entered into a consent agreement with Sika AG to address competition concerns with its acquisition of MBCC Group, said the company.
A Bureau review concluded that the proposed transaction would likely lessen competition substantially in the supply of admixture systems in Canada. In particular, it would provide Sika AG with increased market power in Canada. This could lead to price increases for customers and/or decreases in other non-price aspects of competition, like innovation.
To resolve the Bureau’s concerns, Sika AG has agreed to sell certain MBCC Group assets to a single independent purchaser to be approved by the Commissioner of Competition. Under the terms of the agreement, these include: 3 admixture production plants in Canada, located in Nisku, Alberta; Brampton, Ontario; and Saint-Leonard (Montreal), Quebec; 10 admixture production plants and a research and development centre in Beachwood, Ohio, in the United States; and a global research and development centre in Trostberg, Germany.
The Commissioner is satisfied that the sale of MBCC Group’s admixture systems businesses in Canada and the US and the research and development centre in Germany will resolve the competitive issues arising from the proposed transaction in Canada.
As part of a broader international remedy, Sika AG will also sell MBCC Group’s admixture systems businesses in Europe (EEA, UK and Switzerland), and MBCC Group’s admixture systems and construction systems businesses in Australia and New Zealand. Throughout its review the Bureau’s officers were in communication with international counterparts, including the European Commission, the UK’s Competition and Markets Authority, the United States DOJ, the New Zealand Commerce Commission and the Australian Competition & Consumer Commission.
We remind, Sika has agreed to sell Aliva Equipment, a Swiss unit supplying machines for the application of shotcrete, to Normet Group Oy, a Finnish global company providing solutions for underground construction, said the company.
In 2021, Aliva Equipment generated sales of CHF 12 million.
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. Sika has subsidiaries in 101 countries around the world and manufactures in over 200 factories.