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CMA merger control final report: Sika/MBCC—SLC in UK chemical admixtures; fast-tracked phase 2; partial divestiture remedy (15 December 2022)

Practice notes
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CASE HUB ARCHIVED — this archived case hub reflects the position at the decision date of 15 December 2022; it is no longer maintained. See further, timeline.

Case facts

Summary of a UK merger investigation into Sika AG’s proposed acquisition of MBCC. The deal featured horizontal overlaps in the supply of chemical admixtures used within the construction sector.

Latest developments

On 15 December 2022, the CMA published its final report, finding that the transaction gives rise to a SLC in the supply of chemical admixtures for cement, concrete and wet mortar in the UK. To resolve the SLC, the parties offered a partial divestiture, involving the sale to a single purchaser of MBCC’s chemical admixtures business in the UK, across Europe and multiple other countries (including its central R&D assets).

Parties

  • Sika AG (Sika): a Swiss-based multinational speciality company active across the construction sector and the motor vehicle industry.
  • MBCC Group (MBCC): a German-based company headquartered in Mannheim. It is a leading supplier of construction chemicals and solutions.

Background

On 11 November 2021, the parties announced that Sika had signed a definitive agreement to acquire MBCC from an affiliate of Lone_...

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