SIG and Kingspan have ended plans for SIG to sell its Building Solutions subsidiary to Kingspan. The two agreed a £37.5m deal in October 2019. However, the Competition & Markets Authority (CMA) decided to refer the proposed acquisition for further investigation last month.
In an announcement this morning SIG said that the purchase agreement would expire in July. It is anticipated that the CMA’s investigation would conclude in October 2020 and accordingly the date in the Agreement would need to be extended in order for the CMA investigation to be carried out.
As a result of the prevailing market conditions, it has not been possible for the SIG and Kingspan to agree commercial terms for the extension of the Agreement. Accordingly, the parties have agreed to terminate the Agreement with immediate effect and the Disposal therefore will not proceed.
SIG is currently reviewing a number of options regarding the Building Solutions business and will provide further updates when appropriate.