Kingspan’s acquisition of Building Solutions called in by CMA

The Competition and Markets Authority (CMA) has referred Kingspan’s proposed acquisition of SIG’s Building Solutions (National) Limited for an in-depth investigation.

The CMA said in a statement that on the basis of the information currently available to it, it is or may be the case that this merger lessens competition.

SIG announced the proposed £38 million disposal back in October but stated that it was subject to CMA approval. The CMA’s Phase 1 investigation found that the deal could leave the merging companies’ customers, typically building contractors, with few alternative suppliers to choose from.

Kingspan and Building Solutions were unable to address the CMA’s concerns and the deal will now be referred for an in-depth Phase 2 investigation.