UK: Kingspan’s anticipated purchase of Building Solutions raises competition concerns
Topics: KINGSPAN BUILDING SOLUTIONS UK
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.
Kingspan already owns a number of businesses that supply these products in the UK, including Joris Ide.
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.
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 Competition and Markets Authority’s (CMA) Phase 1 investigation therefore found that the deal could leave the merging companies’ customers, typically building contractors, with few alternative suppliers to choose from. ■