Cement giants in the running for Sika admixture business

Holcim and HeidelbergCement are reportedly among the companies competing for Sika AG’s US admixtures business, which is believed to be valued at US$800m-1bn. Sika is selling off the asset to satisfy regulatory approval following its US$5.6bn purchase of German-based MBCC Group, formerly BASF Construction Chemicals, from an affiliate of Lone Star Funds in November 2021. According to Bloomberg, Turkish conglomerate Haci Omer Sabanci Holding AS is also interested in the Sika business, having planned a number of acquisitions, including in the cement sector, as part of its long-term strategy. 
 
Sika is reportedly planning to offload a smaller operation in Australia along with some European plants later in 2022. The sale of its US admixtures business would add to almost US$40bn of building material deals around the globe already this year, according to Bloomberg, as companies continue to restructure their portfolios towards higher-growth sectors.