(MENAFN- The Peninsula) Bloomberg
London: Ineos, the chemicals company built by British billionaire Jim Ratcliffe, is nearing a deal to buy assets being sold by Sika AG to appease antitrust regulators, people with knowledge of the matter said.
An agreement could be announced as early as Monday, according to people familiar with the matter, who asked not to be identified because discussions are private. The deal values the admixture assets at about $750m, they said.
Ineos beat out private equity firms including Cinven, CVC Capital Partners and Clayton, Dubilier & Rice, the people said.
Sika is selling the assets as it seeks to gain regulatory approval for its largest-ever transaction, the 5.5bn Swiss-franc ($5.9bn) takeover of German rival MBCC Group. The Swiss company's admixture business makes substances that can be added to concrete to modify its properties.
While talks are advanced, they could still be delayed or fall apart, the people said. Representatives for Sika and Ineos declined to comment.
Shares of Sika have risen 11% in Zurich trading this year, giving the company a market value of 37.9bn francs.
Sika in September relaunched the sale of the admixtures business in North America, Europe and Australia after an attempt to sell it piecemeal received antitrust pushback. The UK's merger watchdog had launched an in-depth investigation into the MBCC deal over concerns it may weaken national competition in the supply of chemical admixtures.
Sika, which makes sealants, mortars and other building adhesives, has been stepping up its pace of dealmaking. Its chief executive officer, Thomas Hasler, is seeking to tap demand for new materials that support sustainability and the shift to electric vehicles.
Ratcliffe has been expanding his business empire beyond the chemicals industry, including an off-road vehicle to compete with Land Rover's Defender.
Ineos has invested in cycling, sailing and motorsport teams over the past decade, though attempts to break into Premier League football have been less successful.
MENAFN15012023000063011010ID1105430744
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.