(AWP) The construction chemicals manufacturer Sika (SIKA 237.30 +3.17%) has to accept a delay in the acquisition of the former BASF construction chemicals business (MBCC Group) announced at the end of November 2021. The reason is an investigation by the British antitrust authorities.
The British competition and market supervisory authority CMA wants to examine the planned takeover of the MBCC Group by Sika in more detail for the effects on the British market, Sika announced on Wednesday. The completion of the transaction has therefore been delayed and is now scheduled for the first half of 2023.
According to Sika, however, this has no impact on the “strategic attractiveness” of the transaction. The company confirms earlier statements, according to which annual synergies of CHF 160 to 180 million can be expected.
Some countries have already given the green light
Sika has already received unconditional approval from the supervisory authorities in numerous countries, including Japan, China, Brazil, South Africa, Saudi Arabia, Turkey and Thailand.
With the purchase of the former BASF construction chemicals business (MBCC), Sika is currently completing the largest deal in the company’s more than 100-year history. The closing of the transaction was originally planned for the second half of 2022, but a few weeks ago with the half-year figures it was specified that the closing should take place “towards the end” of 2022.
Sika announced the acquisition of the MBCC Group at the end of 2021. The company lets the purchase of the competitor cost 5.5 billion francs. The deal will be financed with debt and without a capital increase.
In market circles, the news about the delay is relatively calm. The postponement of the conclusion of the transaction is annoying, according to a comment from Baader Helvea. However, this does not change the fact that the deal will generate significant value for Sika. On the stock exchange, Sika shares are trading around 1.5% lower in a weaker overall market in the morning.
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