LONDON (dpa-AFX) - The U.K.'s Competition and Markets Authority or CMA said it has accepted a remedy from Swiss specialty chemical firm Sika AG (SXYAY.PK, SKFOF.PK) and MBCC Group, a German supplier of construction chemicals and solutions, preventing their global merger from harming the UK construction industry. The remedy will maintain service quality for the construction industry and prevent higher prices.
In October 2022, the companies proposed to sell MBCC's chemical admixtures business in the UK, Europe, and several other countries, to address concerns that the chemical admixtures merger would reduce competition in the UK.
The CMA said Thursday that it has accepted that the proposed sale would resolve the competition concerns it identified, bringing the case to a close.
The CMA has published the final decision, with a detailed assessment of a complex remedy, well ahead of the deadline of 24 January 2023.
In November 2021, Swiss firm Sika agreed to buy the German based MBCC Group in a 4.5 billion pounds deal. Sika and MBCC are the 2 largest UK suppliers of chemical admixtures, which are an essential input for products like concrete and cement used in the construction industry and control various characteristics of concrete, such as its strength or setting time.
Following an initial Phase 1 investigation, the CMA identified competition concerns in the supply of chemical admixtures in the UK. As a result, the CMA referred the deal for an in-depth Phase 2 investigation in August 2022.
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