Saint-Gobain and Sika End Dispute after 3-year Legal Standoff

Glass Magazine
May 14, 2018
COMMERCIAL, RETAIL, FABRICATION

In December 2014, officials from Saint-Gobain announced it acquired a controlling interest in Sika for $2.8 billion. Saint-Gobain purchased the controlling share—16.1 percent of Sika’s capital and 52.4 percent of its voting rights—in a confidential auction process from the Burkard-Schenker family, which owns the majority stake in Sika. (Read Glass Magazine's coverage at the time.) 

The transaction led to a three-year legal battle, with Sika management challenging the sale of majority ownership shares from the Burkard-Schenker family. Last week, officials from Saint-Gobain, Sika and the Burkard-Schenkers signed an agreement to end the legal standoff.

The terms of the agreement allow for the ownership family to sell their stake in Sika to Saint-Gobain, “which will give up the special voting rights that were at the heart of the conflict,” according to a May 11 report from Bloomberg. Sika also purchased a 7 percent holding from Saint-Gobain, according to the article.

Read full details of the deal. 

CORRECTION: A previous version of this article incorrectly stated that this agreement would allow Saint-Gobain's takeover to proceed. 

Read the full Bloomberg report.