EU Probes 2021-2022 Price Fixing by Sika, Other Construction Chemical Firms

Q: With fines potentially reaching billions, which companies will fall in the EU’s massive construction chemical probe?

The companies in the EU construction-chemicals probe are Cemex, Sika, Mapei, Chryso, TAM Groupe, Master Builders Solutions, MC Bauchemie, Ha-be, Liesen and Remei, alongside three trade associations: France’s SYNAD, Germany’s Deutsche Bauchemie and Spain’s ANFAH. The European Commission’s case centers on alleged cartel conduct in 2021 and 2022 involving chemical additives used in cement, concrete and mortar. Brussels says the companies may have coordinated price increases, allegedly using trade associations to help prepare or support market messaging during a period of sharp cost inflation after the pandemic and Russia’s invasion of Ukraine. The scope varies by country. In France, the Commission sent charges to Cemex, Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika, TAM and SYNAD. In Germany, it named Cemex, Ha-be, Mapei, Master Builders Solutions, MC Bauchemie, Liesen, Remei, Sika and Deutsche Bauchemie. In Spain, it charged Chryso, Mapei, Master Builders Solutions, MC Bauchemie, Sika and ANFAH. The case is at the statement-of-objections stage, meaning the Commission has set out its preliminary view but has not yet reached a final decision. The companies and associations can now review the file and respond. If the allegations are upheld, fines can reach up to 10% of a company’s global annual turnover, which is why the potential penalties could run into the billions for the largest groups.

3 articles · Updated · Bloomberg · Jul 20

The European Commission opened an antitrust probe into possible price fixing by construction chemicals makers, including Sika, over additives and admixtures used in cement, concrete and mortar.
Preliminary concerns center on manufacturers allegedly coordinating future price increases during 2021 and 2022, rather than competing independently on pricing.
The case later widened into formal accusations against Cemex, Sika, Mapei, Chryso and TAM Groupe over an alleged cartel spanning France, Germany and Spain.
EU inspectors had already carried out surprise raids in 2023, and companies could face fines of up to 10% of global annual turnover if the allegations are proven.