Statement by Executive Vice-President Vestager on the decision by Kingspan and European Architectural Systems to abandon the proposed transaction involving the purchase of Trimo

Statement by Executive Vice-President Vestager on the decision by Kingspan and European Architectural Systems to abandon the proposed transaction involving the purchase of Trimo

The European Commission takes note of the decision by Kingspan and European Architectural Systems (i.e. the parent company of Trimo) to terminate their proposed agreement according to which Kingspan intended to acquire sole control over Trimo. This marks the end of the Commission’s investigation into this transaction. Kingspan, based in Ireland, is a manufacturer of insulating panels, including mineral fibre sandwich panels, and other building materials and solutions. Trimo, based in Slovenia, is active mainly in the manufacture of mineral fibre sandwich panels. Following the results of the initial enquiry with the market, on 12 April 2021, the Commission opened an in-depth investigation into the proposed transaction. The Commission was concerned that the proposed transaction would negatively affect competition in several national markets for mineral fibre sandwich panels.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Kingspan and Trimo are leading suppliers of high quality mineral fibre sandwich panels. Together, they would have become by far the largest player in Europe.

When we opened our in-depth investigation, we had concerns that the proposed transaction would negatively affect competition in certain building materials markets, leading to higher prices, reduced quality or less choice for customers.

Our preliminary findings set out in our Statement of Objections addressed to Kingspan indicated that indeed the merger was likely to lead to price increases for mineral fibre sandwich panels in several national markets, to the detriment of customers that rely on this material for their activities.

Mineral fibre sandwich panels are used in the construction industry to insulate and make more energy efficient industrial and commercial buildings. These two aspects are key to achieving our European Green Deal objectives. We must therefore ensure that these products remain available to customers at affordable prices”

Source: Statement by Executive Vice-President Vestager (europa.eu)

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