(Reuters) – Australia’s competition regulator said on Friday it was seeking market views on the proposed sale of MBCC Group’s assets in the country by Swiss chemicals maker Sika AG.
The divestment is part of a global remedy proposed by the Swiss company to satisfy the concerns of competition authorities about its 5.5 billion Swiss franc ($5.94 billion) acquisition of MBCC Group, the Australian Competition & Consumer Commission (ACCC) said in a statement.
The ACCC has concerns that the acquisition would “substantially” lessen competition in the supply of chemical admixtures in the country by combining the two largest suppliers with a likely market share of about 80%, the regulator added.
“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.
The MBCC deal was recently cleared by UK’s competition watchdog.
The ACCC is inviting submissions on the proposed divestment undertaking by Feb. 3, 2023.
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(Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)