EU launches probe into Kingspan acquisition

EU antitrust regulators have opened a full-scale investigation into Kingspan’s proposed acquisition of Slovenian rival Trimo, concerned the deal may reduce competition and push up prices

Mon, 12 Apr, 2021 - 18:05

EU antitrust regulators have opened a full-scale investigation into insulation maker Kingspan’s proposed acquisition of Slovenian rival Trimo, concerned the deal may reduce competition and push up prices.

The European Commission said the deal, announced in August last year, could significantly reduce competition for mineral fibre sandwich panels in the Czech Republic, Denmark, France, Hungary, Slovakia, Slovenia and the UK, as both companies are direct rivals.

“Together, Kingspan and Trimo would be by far the largest player in Europe and the main supplier of high-quality mineral fibre sandwich panels,” European Competition Commissioner Margrethe Vestager said in a statement.

The EU competition watchdog has set an August 20 deadline for its decision. Trimo is owned by private equity firm Innova Capital.

Acquisition haul

Late last month, Kingspan – whose share price has suffered since its involvement in the inquiry into the Grenfell tower block disaster in London – continued its recent acquisition haul by agreeing to buy Danish insulation business Logstor for around €253m.

That deal is expected to gain regulatory approval and be completed around the middle of this year. Kingspan will fund the purchase from its existing credit facilities.

Kingspan has made three bolt-on acquisitions since the turn of the year, but Logstor is considerably larger and ranks around the top-five deals Kingspan has ever undertaken.

Chief executive Gene Murtagh recently said Kingspan has firepower of about €2bn –in loan facilities and cash balances – to carry out acquisitions.

• Reuters and Irish Examiner

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