The European Commission opened an in-depth investigation on Monday 12 April into the proposed acquisition of Trimo, arhitekturne rešitve, d.o.o. (‘Trimo’, based in Slovenia) by Kingspan Group plc (‘Kingspan’, based in Ireland).
The Commission is concerned that the proposed transaction would reduce competition and increase prices in the market for mineral fibre sandwich panels in several Member States and the UK.
According to Margrethe Vestager, Executive Vice-President responsible for competition policy, “together, Kingspan and Trimo would be by far the largest player in Europe and the main supplier of high quality mineral fibre sandwich panels. We need to ensure a healthy competitive landscape for all the businesses relying on these products to insulate their buildings”.
Kingspan and Trimo are both market leaders in the field of mineral fibre sandwich panels for the construction, renovation and insulation of industrial and commercial buildings.
The Commission’s initial investigation showed that Kingspan and Trimo are in direct competition in several European countries. 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 have significant combined market shares: both companies have few competitors that can offer products and services of comparable quality.
Moreover, in the countries in question, the remaining competitors would be significantly smaller than the merged entity. The proposed transaction would therefore remove a significant competitive constraint for both companies.
It also appears that the market for mineral fibre sandwich panels is characterised by relatively high barriers to entry and expansion.
The Commission now has 90 working days, until 20 August 2021, to take a decision. (Original version in French by Lionel Changeur)