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Sika CEO says buying Parex means a pause on large acquisitions

Sika CEO says buying Parex means a pause on large acquisitions
The logo of Swiss chemical group Sika is seen at a plant in Zurich, Switzerland January 8, 2019. REUTERS/Arnd Wiegmann   -   Copyright  ARND WIEGMANN(Reuters)
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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 billion) on Tuesday.

Sika has been linked with the construction chemicals business of BASF <BASFn.DE>, which could be worth around 3 billion euros (£2.7 billion) 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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