LONDON (dpa-AFX) - UK's Competition and Markets Authority or CMA announced Tuesday that Sika AG (SXYAY.PK, SKFOF.PK), a Swiss specialty chemical firm, and MBCC Group, a German supplier of construction chemicals and solutions, have now proposed to sell MBCC's chemical admixtures business in the UK, Europe, and several other countries.
The proposal aims to address the concerns that the chemical admixtures merger will reduce competition in the UK.
In November 2021, Sika agreed to buy MBCC Group in a 4.5 billion pounds deal.
The market regulator, which has provisionally found that the deal could reduce competition, accepted the request from the two largest UK suppliers of chemical admixtures, to consider a 'fast-track' remedy to address competition concerns.
The companies' latest proposal to sell MBCC's chemical admixtures business post merger is expected to address those concerns.
CMA said in a statement, 'The next stage of the CMA's investigation will focus on assessing whether this will fully replace the loss of competition arising from the merger, and the CMA is currently consulting on the remedies that have been proposed.'
The CMA is asking for views on the remedy offered by November 4 and on its provisional findings by November 15. The statutory deadline for the CMA's final report is January 24, 2023.
In Switzerland, Sika shares were trading at 222.90 Swiss francs, up 1.18 percent.
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