By Pierre Bertrand


Australia's competition regulator is seeking views on a proposed court-enforced divestment by Sika AG as part of the Swiss chemical company's acquisition of German-based construction chemicals company MBCC Group.

The Australian Competition and Consumer Commission has preliminary concerns that the deal, announced in November 2021 for an enterprise value of 5.5 billion Swiss francs ($6 billion), would hurt competition in the country.

Sika has offered to divest MBCC's business and subsidiary, Bluey Technologies, in Australia and New Zealand, the ACCC said.

"We are seeking views from market participants as to whether the proposed divestiture undertaking would create an effective, independent and long-term competitor to Sika," ACCC Commissioner Stephen Ridgeway said in a statement, adding the regulator invites submissions by Feb 3.

The divestment would be part of a global solution offered by Sika and MBCC to assuage regulatory fears over the merger of the two companies.

In December the U.K.'s market watchdog accepted a proposal to dispose of MBCC's chemical admixtures business including its central research and development assets.

Sika said earlier this week that Ineos Enterprises will acquire MBCC's admixtures assets in the U.S., Canada, Europe, and the U.K. and its entire operations in Australia, and New Zealand.

Sika anticipates its acquisition of MBCC will close within the first half of the year.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

01-20-23 0604ET