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Commission clears acquisition of MBCC by Sika, subject to conditions

Christian Fernsby |
The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of MBCC by Sika.

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The approval is conditional on the divestiture of MBCC's global chemical admixture business.

Sika and MBCC are key innovators and global leaders in the development and supply of chemical admixtures and construction materials.

The development of new polymers and new formulations of chemical admixtures play a key role in the concrete industry, in particular to address sustainability challenges, such as bio-based admixtures.

The Commission's preliminary investigation showed that the transaction, as initially notified, would have substantially reduced competition and led to higher prices and less innovation in the European Economic Area (‘EEA') in the markets for chemical admixtures and concrete admixtures.

To address the Commission's concerns Sika offered to divest MBCC's chemical admixture business in the EEA, Australia, Canada, New Zealand, Switzerland, the UK and US, including global research and development facilities.

The commitments consist of the structural divestiture of a stand-alone business, which fully removes the horizontal overlaps between the parties in chemical admixture markets in the EEA. This will enable a purchaser to run the divested business as viable competitive force in the market on a lasting basis.

The Commission will closely monitor the divestment process, including the choice of any suitable purchaser for the divested businesses that will have to be approved by the Commission.

Following the market test, the Commission concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.

During its investigation, the Commission cooperated closely with its counterparts in Australia, Canada, New Zealand, the UK and U.S.


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