Sika Shares Surge on News of $6 Billion Deal for Rival MBCC (1)

Sika AGhas agreed to buy German rival MBCC Group for 5.5 billion francs ($6 billion), allowing the Swiss building materials company to broaden its product range.

Shares in Sika surged nearly 12%, the most in more than a year. They were up 8.5% at 10:40 a.m. in Zurich.

Private equity company Lone Star Funds is selling the business formerly known as BASF Construction Chemicals. The acquisition will boost Sika’s earnings per share from the first year after completion, according to a statementon Thursday.

Sika, which makes sealants, mortars and other building adhesives, said the price is 11.5 ...