Chemistry
Sika sells parts of the MBCC Group to Ineos
As announced, the building materials group Sika is separating from parts of the former construction chemicals business of BASF after the takeover of the MBCC Group. Part of MBCC Group’s additives business is now being sold to Ineos Enterprises.
A corresponding agreement had been signed, Sika announced on Monday. Ineos Enterprises acquires MBCC’s additives business in the United States, Canada, Europe and the United Kingdom. In addition, Ineos acquires the entire divisions in Australia and New Zealand.
The sold business generated sales of around 920 million francs in 2022 and includes production and sales locations in 36 countries with over 1,600 employees.
The background to the divestment is official requirements. After the takeover of the MBCC Group by Sika, which was announced at the end of 2021, the central Swiss were confronted with concerns from the competition authorities. The closing of the transaction was originally planned for the second half of 2022, but the authorities in North America (USA and Canada), in Europe (UK and Switzerland), as well as in New Zealand and Australia had expressed reservations.
Sika now expects the takeover of the MBCC Group to be completed in the first half of 2023. However, the transaction is still subject to official approvals. However, Sika has already received unconditional approval from the authorities for the takeover of the MBCC Group in countries such as Japan, China, Brazil, South Africa, Saudi Arabia, Turkey, Thailand and Mexico.
Sika paid 5.5 billion Swiss francs to purchase its competitor MBCC, generating additional sales of around 2.9 billion Swiss francs. The detached parts are now gone.
Sika also confirmed earlier statements that the acquisition of MBCC should bring in annual synergies of CHF 160 to 180 million. Sika describes the divestment announced today as an “important milestone” for the conclusion of the deal.
(SDA)