UK CMA to Launch In-Depth Probe Into Kingspan's Acquisition of SIG Unit

By Ian Walker

The U.K. Competition and Markets Authority said Tuesday that it will launch a phase 2 investigation into Kingspan Group PLC's proposed acquisition of Building Solutions (National) Ltd. from SIG PLC, after they failed to offer any solutions to its concerns over the deal.

The regulator said earlier this month that it had identified competition issues in Kingspan's proposed acquisition and gave the companies until April 16 to offer remedies on the deal. It said at the time that the anticipated acquisition may be expected to result in a substantial lessening of competition in the U.K. based on the information available at the time.

The regulator said Tuesday that it was informed by the parties on April 16 that they wouldn't offer any undertakings to satisfy its concerns, and that it would now refer the merger for a further in-depth investigation.

Irish building-materials group Kingspan said last October that its panels division was buying Building Solutions from SIG for 37.5 million pounds ($46.7 million).

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

April 21, 2020 02:55 ET (06:55 GMT)

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