BASF to Sell Construction Chemicals Business, Sika Interested
Originally published by: Reuters — February 22, 2019
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Editor's Note: Sika acquired Rmax in 2016.
Switzerland’s Sika would be interested in buying some parts of BASF’s construction chemicals business but has ruled out bidding for the whole business, Chief Executive Paul Schuler told Reuters on Friday.
The Swiss chemicals maker is still awaiting a sales pack from bank Goldman Sachs which has been appointed by BASF. BASF will launch the sale of its $3 billion-plus construction chemicals business in the spring, as part of the German chemicals group’s drive to focus on more profitable operations, people close to the matter said.
Schuler said Sika would be interested in parts of BASF’s business, for example its sealants, flooring and mortar units.
But competition concerns means Sika would not launch a bid for the whole business, he said.
“We would have a look at it,” Schuler said. “BASF have some fantastic businesses in there, they have a lot of interesting things which we would pick up if we could.”
“But buying the whole thing is out of the question.”
Funding a deal would not be a problem for Sika, which is mainly concerned about an overlap between the two companies business in concrete admixtures, used to waterproof or strengthen building projects.
In some markets a combination of Sika and BASF’s concrete admixtures businesses would have a market share of up to 80 percent, meaning a tie-up could fall foul of market regulators.
Sika would instead wait on when and how BASF decided to dispose of the business, Schuler said.
One possibility could be Sika teaming up with other industry players, who would divide the business after buying it.