The proposed takeover of Xtratherm's parent Leanort has been thwarted by the Irish Competition Authority
Ireland’s Competition Authority has blocked Kingspan’s proposed takeover of Leanort Group on the grounds the deal would reduce competition in the Irish insulations materials market.
Material supplier Kingspan put in a £59.5m offer for Leanort, which trades under the Xtratherm insulation brand, in June. The Competition Authority launched its investigation one month later.
In a statement today Ireland’s Competition Authority said: “The Competition Authority announced today that it has decided to block the proposed acquisition of Leanort Group by Kingspan Group on the grounds that such a transaction would substantially lessen competition in the manufacture and provision of insulation materials in the State.”
Kingspan said it was disappointed by the Authority’s decision.
It added: “Kingspan in consultation with the vendors will study the written determination of the Authority and take advice from its lawyers, before deciding whether or not to appeal the decision to the High Court.”
This is only the second time the Competition Authority has blocked a merger since the government introduced merger controls in 2003.