The Competition and Markets Authority or CMA has found that the anticipated purchase of MBCC Group by Sika AG (SXYAY.PK,SKFOF.PK) could lead to a loss of competition in the supply of chemical admixtures in the UK. Sika announced its intention to acquire MBCC, in a deal valued around 4.5 billion pounds, in November 2021.
"The loss of competition that this deal could bring about could lead to higher prices and poorer quality products for customers, increasing the costs of these projects," said Colin Raftery, Senior Director of Mergers at the CMA.
Sika and MBCC now have 5 working days to submit proposals to address the CMA's concerns. If suitable proposals are not submitted, the deal will be referred for an in-depth phase 2 probe.
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