January 8, 2019 / 10:20 AM / 6 months ago

Sika CEO says buying Parex means a pause on large acquisitions

CEO Paul Schuler of Swiss chemical group Sika addresses a news conference in Zurich, Switzerland January 8, 2019. REUTERS/Arnd Wiegmann

ZURICH (Reuters) - Sika (SIKA.S) will pause on making further large scale acquisitions after the Swiss construction chemicals company’s largest-ever deal to buy France’s Parex worth 2.5 billion Swiss francs ($2.55 billion) on Tuesday.

Sika has been linked with the construction chemicals business of BASF (BASFn.DE), which could be worth around 3 billion euros according to analysts, as it seeks to consolidate the fragmented sector.

“We do this [Parex] deal now and we aware it is the biggest thing we have acquired. We have a big plate, there will be a pause,” Chief Executive Paul Schuler told a press conference in Zurich on Tuesday.

When asked about BASF, Schuler said “of course” Sika spoke to all potential targets.

“This is a great company, but we have to finish this job. That is our focus, and see what the future brings. It is not so that we are getting close to a deal for the BASF construction chemicals business.”

Reporting by John Revill, editing by Louise Heavens

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