The UK’s Competition and Markets Authority (CMA) and the European Commission (EC) have launched coordinated investigations into suspected anticompetitive practices in the supply of chemicals to the construction industry.
The investigations relate to chemical admixtures and additives for concrete, mortar and cement. Two firms have so far confirmed they are cooperating with investigators.
The CMA said that it suspects anticompetitive behaviour may have taken place involving unspecified “industry bodies” and companies supplying chemicals to the construction industry.
The UK watchdog’s investigation is being coordinated with a simultaneous probe from the EC, which said it had carried out unannounced antitrust inspections at “companies active in the construction chemicals sector in several member states”.
The EC said it had concerns that the companies inspected “may have violated EU antitrust rules that prohibit cartels and restrictive business practices”.
An initial CMA investigation – including information-gathering, analysis and review of information gathered – will last until July 2024. The competition watchdog may then issue a statement of objections if it decides competition law may have been infringed.
French company Saint-Gobain and Swiss firm Sika have confirmed that they are cooperating with inspections. Switzerland is not an EU member state but the two parties signed a deal in 2014 to cooperate on competition issues.
In a statement, Saint-Gobain said it was “aware of and cooperating with” competition law investigations in the EU, the UK and Turkey.
The company confirmed that inspections had taken place at its construction chemicals business unit site in Turkey. It said this unit “is and has always been fully committed to competition law compliance and is cooperating with the investigations”.
Sika confirmed to CN that inspections had taken place into “suspected antitrust irregularities in the area of additives for concrete and cement”, adding: “The fair operation of the markets is fundamental to Sika and we support this investigation with all our efforts and cooperate fully with the authorities.”
The CMA stated that “at this stage no assumptions should be made about whether competition law has been broken”. Similarly, the EC emphasised that its inspections do “not mean that the companies are guilty of anticompetitive behaviour nor does it prejudge the outcome of the investigation itself”.
The EC said its inspections on 17 October “were conducted in coordination with the UK CMA and the Turkish Competition Authority”, adding that it had also been in contact with the US Department of Justice’s Antitrust Division.
The CMA said it was “working closely” with the EC and was also in contact with other authorities, such as those in the US.
In 2021, the CMA raised concerns relating to Sika’s planned purchase of German chemicals supplier MBCC, given that the companies were the two-largest UK suppliers of chemical admixtures.
As a condition of the merger being approved, Sika sold MBCC’s chemical admixtures business in the UK, across Europe and several other countries, and the merger went ahead in May this year.
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