MOSCOW (MRC) -- Sika is to divest some admixtures assets to investment fund Cinven after the UK’s competition authority showed “concerns” about the initially-planned divestment to INEOS, said the company.
Sika is in the process to acquire construction chemicals peer MBCC, a process it hopes to conclude in the first half of 2023. In January, it said it was to divest to INEOS some admixtures assets coming from MBCC in the UK, the US, Canada and Europe.
However, the UK’s Competition and Markets Authority (CMA) told Sika it had concerns about the levels of market concentration the divestment to European chemicals major INEOS could have in the markets. “The parties [Sika and INEOS] therefore agreed to terminate the contract, while Sika has agreed to sell the ‘disposal perimeter’ [the assets] to international private equity firm Cinven,” said Sika.
“The CMA has already approved Cinven as a suitable buyer of the disposal perimeter. Financial and transaction parameters remain largely unchanged." According to Sika, the assets to be divested now to Cinven generated sales of Swiss francs (Swfr) 920m (USD1.0bn) in 2022.
They include production sites and sales offices in 36 countries with more than 1,600 employees.
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.