After examining the effects of Kingspan’s (Kingscourt / Ireland; www.kingspan.com) proposed acquisition of Joris Ide Group (Zwevezele / Belgium; www.joriside.com) – see Plasteurope.com of 29.01.2015 – the European Commission in mid-March cleared the purchase from a merger regulation standpoint. Both companies produce sandwich panels and construction sheets at facilities spread across the EU’s member states.

The investigation into PU or mineral wool sandwich panels focused on three geographic areas with significant overlaps, the EU said. In the case of the Benelux countries and the surrounding area, the authorities found that even post-merger, a number of players with spare capacity remain, including ArcelorMittal and Tata Steel. The investigation also concluded that it is comparatively easy for a competitor to expand in other geographic areas as a result of the relatively low cost associated with setting up new production lines.

Despite Kingspan’s strong position in the UK and Ireland, the EU found that the merge would not lead to competition concerns in this region either, largely as a result of the fact that Joris Ide has no facilities in the area. The last remaining region covered by the examination focused on Hungary and its environs. Here, too, the EU concluded that the combined company’s market share would remain moderate for sandwich panels.

Justifying its approval, the EU concluded that “the merged entity will continue to face sufficiently strong competition after the merger and customers will still have sufficient alternative suppliers in all markets concerned.”