Sika to sell admixture assets to Ineos

Sika has struck a deal with UK rival Ineos, the Swiss chemicals company confirmed on Monday, as it looked to clear the way for its £5bn acquisition of MBCC Group.

Ineos Enterprises, a subsidiary of Ineos, has agreed to acquire MBCC’s admixture business in the US, Canada, Europe and the UK, as well as its entire operations in Australia and New Zealand. Combined, the businesses – which includes production sites and sales offices, and employ more than 1,600 people – generated net sales of around CHF920m (£815m) by the end of 2022.

Financial terms were not disclosed.

Sika and MBCC agreed to sell the assets last December to address competition concerns raised by the UK’s Competition and Markets Authority. Sika first announced the CHF5.5bn acquisition of MBCC, the former BASF Construction Chemicals business, in 2021.

Thomas Hasler, chief executive, said: “The agreement with Ineos Enterprises marks a key milestone in Sika’s acquisition of MBCC. I am convinced we have a found a long-term home for the admixture business. At the same time, Sika has taken a tremendous leap forward on its path to joining forces with MBCC.

Ashley Reed, chief executive of Ineos Enterprises, said: “These well-invested and well-positioned sites present new opportunities for Ineos to grow in the construction market.”

Subject to regulatory approvals, Sika said it now expected the acquisition of MBCC to complete in the first half of 2023.

As at 1345 GMT, shares in Sika had put on 3%.