好色先生TV

The Competition & Markets Authority has raised questions over Kingspan鈥檚 deal to buy insulation panel specialist 好色先生TV Solutions from SIG for 拢37.5m.

The pair agreed the deal last October 鈥� subject to approval from the CMA.

But the authority said the deal raises 鈥渃ompetition concerns in the supply of specialist insulation panels鈥�.

It said Kingspan was the leading provider in the UK of standard foam sandwich panels, which are commonly used as insulated cladding on commercial and industrial buildings.

It added: 鈥淜ingspan already owns a number of businesses that supply these products in the UK.

鈥淭he CMA鈥檚 Phase 1 investigation therefore found that the deal could leave the merging companies鈥� customers, typically building contractors, with few alternative suppliers to choose from.鈥�

And its senior director Colin Raftery added: 鈥淜ingspan is by far the largest player in this market and this deal would involve it buying up one of its only two meaningful competitors. So, we鈥檙e concerned that the deal could damage competition, resulting in higher prices or lower quality products.鈥�

The CMA said it was planning to refer the proposed deal to a phase 2 investigation.

According to CMA guidance, a phase 2 investigation can take up to 24 weeks.

It adds: 鈥淎t Phase 2, a CMA panel of independent Members conducts an in-depth investigation to assess if a merger is expected to result in an SLC [substantial lessening of competition]. If an SLC is expected, the CMA decides upon the remedies required. Such remedies may include prohibiting the merger or requiring the divestiture (sale) of parts of the business.鈥�

Kingspan and SIG have five days to address the CMA鈥檚 concerns or the deal will be referred to a phase 2.