Kingspan hit with €40 million EU fine for misleading data on Slovenian deal

Kingspan Fined €40 Million by EU for Misleading Data on Slovenian Acquisition Probe

EU Antitrust Investigation and Penalty Details

By Foo Yun Chee

Background of the Kingspan-Trimo Acquisition

BRUSSELS, Oct 8 (Reuters) - Irish building materials maker Kingspan was fined €40 million ($44.74 million) for providing incorrect and misleading information during an investigation into its abandoned acquisition of a Slovenian rival, EU antitrust regulators said on Thursday.

European Commission's Four-Year Investigation

The sanction followed a four-year long investigation by the European Commission, which is the EU competition enforcer, and underscores its tough policy against such infringements of EU merger rules.

Statement from EU Antitrust Chief

"When companies withhold or distort the truth, they undermine a system that protects fair competition for everyone. There can be no compromise on disclosure and transparency. If they fail to do so, we do and will act firmly," EU antitrust chief Teresa Ribera said in a statement.

Details of the Abandoned Deal and Subsequent Probe

Kingspan announced its plan to acquire Trimo in 2021 but scrapped the deal in April 2022 after the EU antitrust watchdog warned that the acquisition could jack up prices and reduce quality.

The Commission subsequently opened an investigation in November 2022 to examine whether Kingspan had provided incorrect and misleading information.

Findings and Nature of Misleading Information

Its Thursday decision said the company provided misleading information about how it tracks penetration rates for mineral fibre sandwich panels and the availability of bidding data as well as incorrect information about board members' involvement in certain matters.

Potential Consequences for Companies

Such breaches can cost companies fines up to 1% of their total global turnover.

($1 = 0.8940 euros)

(Reporting by Foo Yun Chee, editing by Inti Landauro)