Ed Frankel
Sika AG moved closer to buying MBCC Group on Monday after agreeing to sell some of MBCC’s admixture assets to Ineos Enterprises.
Sika said INEOS would acquire MBCC’s admixture business in the US, Canada, Europe and the UK, as well as its entire operations in Australia and New Zealand, which would have net sales of around CHF 920 million (993.2 million) by the end of 2022. Dollar) .
The divestment is part of the antitrust remediation process for Sika’s CHF 5.5 billion acquisition of MBCC Group.
Britain’s competition watchdog accepted a proposal by Sika and MBCC in December to sell some of the latter’s assets to prevent the merger from harming the UK construction industry.
Sika expects annual synergies of CHF 160 million to CHF 180 million after the transaction closes.
The transaction is expected to close in the first half of 2023, subject to regulatory approval.
Write to Ed Frankl at edward.frankl@dowjones.com