LONDON (dpa-AFX) - Sika AG (SXYAY.PK, SKFOF.PK), a Swiss specialty chemical firm, said on Monday that it has inked a deal with INEOS Enterprises, an arm of INEOS Group Limited, to sell MBCC Group's admixtures business in the U.S., Canada, Europe, and the UK and its entire operations in Australia and New Zealand.
The transaction serves as part of the necessary remedy process allowing Sika's acquisition of MBCC Group, a German supplier of construction chemicals and solutions.
In December 2022, the UK's Competition and Markets Authority (CMA) had accepted the proposal to sell MBCC's chemical admixtures business in the UK, Europe, and other countries, to address concerns that the chemical admixtures merger would reduce competition in the UK.
In 2021, Sika had agreed to buy the MBCC in a 4.5 billion pounds deal. Sika and MBCC are the two largest UK suppliers of chemical admixtures.
The disposal perimeter generated net sales of around CHF 920 million by the end of 2022.
Sika expects annual synergies of CHF 160 million to 180 million following closing of the transaction, expected in the first-half of 2023.
The company has already received unconditional regulatory approval for the acquisition of MBCC Group in countries such as Japan, China, Brazil, South Africa, Saudi Arabia, Turkey, Thailand, and Mexico.
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