Interim Order Made for Sika Acquisition of MBCC Group

AN INTERIM ORDER has been issued warning Sika and MBCC Group to keep their operations, systems, staff and records separate, by the Competitions and Market Authority (CMA).

The Interim Order follows the proposed acquisition of former BASF company, MBCC, by Sika, and is to ensure that the two companies continue to compete in the UK chemical admixtures market. Chemical admixtures are added to cement, concrete and mortar to control its curing or setting time.

The acquisition is being investigated after Sika plc announced its intention to buy out German headquartered MBCC Group in November 2021 for approximately £4.5 billion. However, because the two companies compete in a relatively constricted market for their products in the UK, particularly amongst larger customers, the CMA launched a Phase Two investigation.

Interim Order

The Interim Order, which applies to subsidiaries of MBCC Group as well, prevents “pre-emptive action” before the CMA has made its final investigation and report on the merger.

The CMA says, “The CMA wishes to ensure that no action is taken pending final determination of the Reference [investigation and report] which might prejudice the Reference or impede the taking of any action by the CMA.”

Now, MBCC has to appoint and pay a monitoring trustee to ensure the CMA’s Interim Order is complied with. The CMA’s own statutory deadline to complete its investigations and report is 24 January 2023.

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