A planned deal that would have involved Kingspan buying rival foam sandwich panel supplier Building Solutions, part of SIG, has been terminated.
The proposed deal was already subject to a phase 2 investigation by the competition watchdog the Competition and Markets Authority (CMA), which hadn’t been expected to complete until October this year.
In an announcement to investors, SIG said that the amount of time the probe would take meant that the sale and purchase agreement, which expires on 7 July, would have to be extended.
But because of the “prevailing market conditions”, it hadn’t been possible for SIG and Kingspan to agree commercial terms for an extension of the agreement.
SIG originally announced in October 2019 that it would sell Building Solutions to Kingspan for £37.5m.
SIG added: “The company is currently reviewing a number of options regarding the Building Solutions business and will provide further updates when appropriate.”
