Sir Jim Ratcliffe’s Ineos snaps up Swiss chemicals company for £615m
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Sir Jim Ratcliffe’s Ineos takes over Swiss chemical company in £615m deal, fueling fears of price hikes in concrete industry
Sir Jim Ratcliffe’s Ineos bought a major chemical company for around £615 million.
The British billionaire’s chemical empire bought the blending activities of Swiss company Sika.
Admixtures are substances that are used to change the properties of concrete, for example to make it waterproof or quick-drying.
British billionaire Sir Jim Ratcliffe’s chemical empire Ineos bought the blending business of Swiss company Sika
The deal paves the way for Sika’s acquisition of German rival MBCC Group for £4.8bn, which has faced opposition from competition regulators.
The UK’s Competition and Markets Authority said the partnership “could lead to higher prices” for UK concrete producers.
And in October, it agreed to the acquisition if MBCC found a buyer for its excipients business in the UK, Europe and several other countries.
According to Bloomberg, Ratcliffe beat out rival interests from private equity firms, including Cinven, CVC Capital Partners and Morrisons owner Clayton, Dubilier & Rice.
The excipients business has an annual turnover of £820 million and employs more than 1,600 people. It has 35 manufacturing sites in the US, Canada, Europe, UK, Australia and New Zealand.
Ashley Reed, boss of Ineos Enterprises, said the acquisition “creates new opportunities” in the construction market.
Sika boss Thomas Hasler said Ineos would be a “long term” home for the company.
Ineos bought a chemical company in Singapore for £280 million last year, expanding its presence in Asia.
Ratcliffe, 70, is expanding his business beyond the chemical industry, including launching an Ineos Grenadier SUV to rival the Land Rover Defender.