UK’s competition authority said on Tuesday it will likely request remedies before allowing the merger between Swiss chemicals firm Sika and German based MBCC, who have now a proposal to sell MBCC’s chemical admixtures business in the UK, Europe and several other countries as a potential compromise.
Sika and MBCC are the UK’s largest suppliers of chemical admixtures, which are an essential input for products like concrete and cement used in the construction industry.
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Sika and MBCC had requested the CMA to “fast-track” the case after accepting the conclusions of the Phase 1 review, which found possible harms to competition in a vital industry. The CMA agreed to move forward with the assessment of a remedy that could address those concerns.
The Competition and Markets Authority, which had said the 4.5 billion pound ($5.08 billion) merger raises competition concerns in the UK, is now in the process of considering the remedies proposed by the companies. The market regulator found in its review that the potential deal could reduce the level of innovation, services and quality available to concrete producers, as well as leading to higher prices.
