Brussels -- The European Commission has approved the sale of control of polyurethane adhesives and construction foam company Sika to France's Saint-Gobain Group.
The European Commission said that the transaction gives rise to vertical links between Saint-Gobain's distribution of building materials and Sika's production of those materials, as well as a number of vertical links in construction chemicals ad materials. Combined market shares in these sectors was moderate and there is considerable competition in the area.
Sika's shareholding structure gives 52% of the voting rights to the shareholding of the Burkard family, which owns 16% of the total shares in Sika. Saint-Gobain offered a 78% premium for the Burkard stake and said it did not want to bid for any other shares in the firm, according to the Financial Times. This, the newspaper said, led the Foundation Trust and Cascade groups, both large shareholders, to mount a legal campain to either block the deal or impel Saint-Gobain to buy the rest of the shares.
The Burkard family are relatives of the Sika's founder Kaspar Winkler.