Kingspan has been fined €40 million by the European Commission for providing incorrect and misleading information during the EU’s 2021 review of its planned acquisition of rival building materials firm Trimo.
Both companies operate in the market for mineral fibre sandwich panels, which are used to construct, renovate and insulate industrial and commercial buildings, the Commission explained in a statement on Thursday.
It opened an investigation in November 2022 to examine whether Kingspan had intentionally or negligently supplied incorrect and or misleading information during the merger review.
The Commission later issued a formal list of concerns to the company on 19 March 2024 and ultimately concluded that Kingspan committed four infringements of the EU Merger Regulation through conduct that was at least negligent.
Kingspan was found to have provided misleading information about how it tracks “penetration rates” for mineral fibre sandwich panels — a measure of how much a product is used compared with other products.
It also gave incorrect and or misleading information about the availability of “bidding data”, meaning records of bids won and lost that competition authorities use to understand how firms compete in a sector.
Further infringements included incorrect information about Kingspan board members’ involvement in acquisition matters and industry trends, and incorrect and or misleading information about its research and development for mineral fibre sandwich panels.
How the fine was calculated
The EU Merger Regulation allows the Commission to fine companies up to 1% of total turnover if they intentionally or negligently provide incorrect or misleading information.
The Commission imposed a €10 million fine for each of the four infringements, bringing the total to €40 million.
Kingspan notified the Commission of its plan to acquire Trimo in March 2021, and the Commission opened an in-depth investigation the following month.
The planned transaction was abandoned in April 2022 after the Commission set out concerns that it could harm competition in certain building materials markets, potentially leading to higher prices, reduced quality or less choice for customers.
“This is the fourth time the Commission has adopted a decision fining a company for providing incorrect or misleading information” since the EU Merger Regulation entered into force, the Commission said.
