Concrete companies’ merger accepted as pricing fears allayed

The competitors watchdog has greenlit the merger of two element suppliers, which it beforehand stated risked pushing up concrete costs.

Swiss multinational Sika agreed in November 2021 to purchase Germany’s MBCC for £4.5bn. The businesses are the UK’s two largest suppliers of chemical admixtures, that are key to the method of producing concrete by controlling its power and setting time.

Sika has a UK arm, and MBCC owns the corporate Grasp Builders Options.

The Competitors and Markets Authority (CMA) beforehand raised considerations that the merger may push up concrete costs due to the discount in “innovation, companies and high quality” accessible to concrete producers.

In October, the companies proposed the sale MBCC’s chemical admixtures enterprise within the UK, Europe, North America and Australasia, in a bid to allay these fears.

At present, Richard Feasey, chair of an unbiased CMA panel, stated: “After Sika and MBCC accepted early on that the deal would have triggered competitors considerations within the UK development business, we had been capable of focus our inquiry on their proposals to deal with our considerations.

“The proposals agreed immediately will preserve the extent of innovation, companies and high quality in chemical admixtures accessible to concrete producers, and assist stop this deal elevating costs for the development business within the UK.”

The CMA might want to approve the purchaser of the MBCC companies earlier than the deal could be accomplished.

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