Competition Bureau reaches agreement with Sika AG to preserve competition in Canada’s admixture systems market
February 22, 2023 – GATINEAU, QC – Competition Bureau
The Competition Bureau has entered into a consent agreement with Sika AG to address competition concerns with its acquisition of MBCC Group.
A Bureau review concluded that the proposed transaction would likely lessen competition substantially in the supply of admixture systems in Canada. In particular, it would provide Sika AG with increased market power in Canada. This could lead to price increases for customers and/or decreases in other non-price aspects of competition, like innovation.
To resolve the Bureau’s concerns, Sika AG has agreed to sell certain MBCC Group assets to a single independent purchaser to be approved by the Commissioner of Competition. Under the terms of the agreement, these include:
- 3 admixture production plants in Canada, located in Nisku, Alberta; Brampton, Ontario; and Saint-Léonard (Montréal), Québec;
- 10 admixture production plants and a research and development centre in Beachwood, Ohio, in the United States; and
- A global research and development centre in Trostberg, Germany.
The Commissioner is satisfied that the sale of MBCC Group’s admixture systems businesses in Canada and the US and the research and development centre in Germany will resolve the competitive issues arising from the proposed transaction in Canada.
As part of a broader international remedy, Sika AG will also sell MBCC Group’s admixture systems businesses in Europe (EEA, UK and Switzerland), and MBCC Group’s admixture systems and construction systems businesses in Australia and New Zealand. Throughout its review the Bureau’s officers were in communication with international counterparts, including the European Commission, the UK’s Competition and Markets Authority, the United States DOJ, the New Zealand Commerce Commission and the Australian Competition & Consumer Commission.
The complete Consent Agreement is available on the website of the Competition Tribunal.
Admixture systems are products that improve and protect buildings and structures. Generally, they are added to concrete to alter technical properties and performance during the application process or to the final product.
Construction systems are products used to protect and repair buildings and structures. They include waterproofing systems, industrial flooring systems, expansion joints and sealants.
Consent agreements generally contain remedial measures that the Commissioner has determined are appropriate to address likely anti-competitive effects of a proposed transaction.
A consent agreement has the force and effect of a court order once it is registered with the Competition Tribunal.
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
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