The competition watchdog, the Competition and Markets Authority (CMA), will conduct an in-depth investigation into Kingspan’s acquisition of rival foam sandwich panel supplier Building Solutions.
The move came after the CMA finished a phase one investigation into Kingspan’s deal to buy Building Solutions from SIG. Building Solutions sells a range of insulation and specialist construction products through a variety of businesses, including Steadmans, Trimform, Advanced Cladding and United Roofing Products. Meanwhile Kingspan already owns a number of UK businesses specialising in these products, including Joris Ide.
The CMA had already raised concerns that Kingspan and Building Solutions are two of only three key suppliers of standard foam sandwich panels in the UK and would only face “serious competition” from one other UK-based supplier – Tata Steel – after the deal.
The watchdog asked Kingspan and Building Solutions to address its concerns but on 16 April, both companies said they would not offer such undertakings to the CMA. As a result, the CMA has moved to a second phase of its investigation.
The statutory deadline for the second phase of the probe is 5 October this year.
