Building supply companies abandon merger during CMA investigation

Latest News Thu, May 21, 2020 1:28 PM

Kingspan has abandoned its proposed deal with Building Solutions during an in-depth CMA probe.

The Competition and Markets Authority (CMA) has therefore today confirmed that it will be cancelling its Phase 2 merger investigation into the takeover.

Kingspan is the leading provider in the UK of standard foam sandwich panels, which are commonly used as insulated cladding on commercial and industrial buildings such as large waste facilities. Building Solutions also sells a range of insulation and specialist construction products through a variety of businesses, including Steadmans, Trimform, Advanced Cladding and United Roofing Products.

After completing its initial Phase 1 investigation in April 2020, the CMA found that the proposed deal could result in customers facing higher prices or lower quality products.

It found that Kingspan and Building Solutions are 2 of only 3 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. Competition from suppliers of products imported from outside the UK and suppliers of other products sometimes used as insulated cladding is also very limited.

The CMA had moved to an in-depth, ‘Phase 2’, review after its concerns were not addressed by the firms.

Kingspan and Building Solutions have now decided to abandon the deal and so the CMA will be cancelling its investigation.

More information is available on the case page.

Featured News

Specification news
Mapei STABILCEM specified to consolidate weak concrete

Specialist Civil and Structural Repair company, Resitech Limited, were asked by...

Read More >>

Specification news
Sustainable and Ethical Design

There is, rightly, a continuing trend towards sustainability and sustainable design...

Read More >>

BUILDING PRODUCT LIBRARY - LATEST BROCHURES

Internal Wall Systems & Finishes Brochure

Internal Wall System...
By Wetherby Building Sy...

Download Now >>

The Steps to Safe High-Rise: Specification & Installation Brochure

The Steps to Safe Hi...
By Wetherby Building Sy...

Download Now >>

Veneered Wood Ceiling & Wall Panels Brochure

Veneered Wood Ceilin...
By Hunter Douglas Ceili...

Download Now >>

BUILDING PRODUCT DIRECTORY - LATEST PRODUCTS

Anvil Metal Cladding Systems
Anvil Metal Cladding Systems

This innovative range of aluminium rainscreen systems allow a precise and efficient installation,...

Read More >>

TotalWall System
TotalWall System

TotalWall provides a complete solution for specifiers, suitable for structural (load-bearing) and...

Read More >>

Modular Façade System
Modular Façade System

Modular construction has become increasingly popular as a quick and cost effective way to build new...

Read More >>

CONSTRUCTION VIDEOS - LATEST VIDEOS

Marley Ltd's new Comprehensive Roof Systems Specification Guide
Marley Ltd's new Comprehensive Roof Systems Specification Guide

As part of its ongoing commitment to supporting architects and specifiers, Marley has launched its...

Watch Now >>

Thru ... air
Thru ... air

Designed to provide a ventilation outlet/inlet using a 4, 5 or 6 inch diameter telescopic pipe to a...

Watch Now >>

Diamond Weep
Diamond Weep

Introducing the new G953 Diamond Weep, providing a robust and discreet solution to cavity wall...

Watch Now >>