EU fines Kingspan over incorrect deal info
The European Commission has fined Cavan-based building-materials group Kingspan €40 million for providing “incorrect and misleading information” during a 2021 review of a deal that the firm ultimately abandoned.
The review was linked to Kinsgpan’s plan to acquire Trimo, as both companies were involved 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.
The EU body opened a probe into whether Kingspan had intentionally or negligently supplied incorrect and/or misleading information in late 2022.
It raised six objections to the information provided by Kingspan, but subsequently dropped two of these.
Board members’ involvement
The commission today (8 October) found that Kingspan had committed four distinct infringement of EU merger rules “through conduct by which it, at least negligently, provided”:
- Misleading information about how it tracked penetration rates for mineral fibre sandwich panels, a measure used to show how much a product is used compared with other products,
- Incorrect and/or misleading information about the availability of 'bidding data' (records about the bids it won and lost),
- Incorrect information about Kingspan board members' involvement in issues such as the planned Trimo deal, other acquisition plans, and industry trends and business strategy, and
- Incorrect and/or misleading information on Kingspan's research and development on mineral fibre sandwich panels.
The commission described the four infringements as “serious”, saying that they led to obstructions in the merger investigation and made it difficult for the EU body to properly review the deal.
“Kingspan could not have been unaware of its obligations under the EU Merger Regulation, meaning that the breach was at least negligent,” it added.
Accuracy ‘key’ for system
The commission found that Kingspan “asserted the non-existence of key documents, misrepresented facts, or claimed the impossibility to provide key information that only Kingspan was in a position to provide”.
Commissioner Teresa Ribera said that the accuracy of the information provided to merger investigations was key for an effective and well-functioning merger-control system.
“When companies withhold or distort the truth, they undermine a system that protects fair competition for everyone,” she said, adding that there could be “no compromise” on disclosure and transparency.
Kingspan has previously said that it disagrees with the commission’s views and that it fully co-operated with the review process.
In its half-year results earlier this year, it pointed out that it would have the right to appeal any decision to the EU courts.