Mergers: Commission opens in-depth investigation into proposed acquisition of Trimo by Kingspan

Daily News 13 / 04 / 2021

Economy - published on 15 April 2021

Source: European Commission Spokesperson’s Service

The European Commission has opened an in-depth investigation to assess the proposed acquisition of Trimo, arhitekturne rešitve, d.o.o. (‘Trimo’) by Kingspan Group plc (‘Kingspan’), under the EU
Merger Regulation. KingspanandTrimo are both leading companies in the market for mineral fibre sandwich panels, which are used for the construction, renovation and insulation of a variety of
industrial and commercial buildings. At this stage, the Commission is concerned that the proposed transaction could significantly reduce competition for mineral fibre sandwich panels in Czechia,
Denmark, France, Hungary, Slovakia, Slovenia and the UK. In each of these countries, Kingspan and Trimo would hold high combined market shares, both offering high quality products and services
while facing limited competition from suppliers able to offer products and services of a comparable quality. Moreover, in most of these countries the remaining competitors would be significantly
smaller than the merged entity. In addition, the market for mineral fibre sandwich panels seems to be characterised by relatively high barriers to entry and expansion. The Commission will now carry
out an in-depth investigation into the effects of the proposed transaction to determine whether it is likely to significantly impede effective competition. The Commission now has 90 working days,
until 20 August 2021, to take a decision. The opening of an in-depth investigation does not prejudge the outcome of the investigation. Executive Vice-President Margrethe Vestager,
responsible for competition policy, said: “Together, Kingspan and Trimo would be by far the largest player in Europe and the main supplier of high quality mineral fibre sandwich panels. These
products are important for a better insulation and energy efficiency of industrial and commercial buildings, which are key to achieve the objectives of the European Green Deal. We need to ensure a
healthy competitive landscape for all the businesses relying on these products to insulate their buildings.”

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