Rival building materials companies Holcim AG and HeidelbergCement AG are among the suitors competing for Sika AG’s US admixtures business, according to people with knowledge of the matter.
Turkish conglomerate Haci Omer Sabanci Holding AS is also interested in the asset, which could be valued at about $800 million to $1 billion, the people said, asking not to be identified discussing confidential information. They are among companies in the second round of bidding for the unit, which creates products for building with cement and concrete, the people said.
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Switzerland-based Sika is selling the admixtures business to help win regulatory approval for its 5.5 billion Swiss-franc ($5.6 billion) takeover of German rival MBCC Group -- its largest ever deal. It is also offloading a smaller operation in Australia and may divest some European plants later this year, the people said. Sika last month completed the the sale of its European industrial coatings business.
Some bidders could still decide against making further offers, while other suitors could still emerge, the people said. Representatives for Sika, HeidelbergCement and Holcim declined to comment. Sabanci couldn’t be immediately reached outside regular business hours.
Sika’s US sale would add to almost $40 billion of building materials deals globally this year, according to data compiled by Bloomberg. The value of transactions has risen 14% from a year ago as companies look to re-mold their businesses in a shift toward higher-growth sectors.
Holcim this month agreed to sell its Indian operations to billionaire Gautam Adani in a $10.5 billion deal. Chief Executive Officer Jan Jenisch said after the deal he’s working on 10 potential acquisitions, without identifying targets, after spending $5 billion in the last year to expand into non-cement building products like roofing.
For Jenisch, a deal for the Sika asset would also be a homecoming of sorts. He was hired by Holcim from Sika in 2017.
Germany’s HeidelbergCement, which is valued at just over $10 billion, late last year completed the sale of its US west region operations to Martin Marietta Materials Inc. Sabanci, meanwhile, said in mid-2020 that it planned acquisitions for its industrial businesses, including cement, as part of its longer-term strategy.
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