By Ed Frankl


Sika AG moved closer Monday to the acquisition of MBCC Group after it agreed to sell some of MBCC's admixtures assets to Ineos Enterprises.

Sika said Ineos would purchase MBCC's admixtures business in the U.S., Canada, Europe, and the U.K. and its entire operations in Australia and New Zealand, businesses which had generated net sales of around 920 million Swiss francs ($993.2 million) by the end of 2022.

The divestment is part of the antitrust remedy process for Sika's CHF5.5 billion acquisition of MBCC Group.

U.K. competition regulators accepted proposals by Sika and MBCC in December to sell some of the latter's assets to prevent the merger from harming the British construction industry.

Sika expects annual synergies of CHF160 million-CHF180 million following closing.

The deal is expected to complete in the first half of 2023, subject to regulatory approvals.


Write to Ed Frankl at edward.frankl@dowjones.com


(END) Dow Jones Newswires

01-16-23 0135ET