Kingspan/Vicwest merger: Competition Bureau requires the sale of Vicwest’s manufacturing facility in Hamilton
By PRN NewsWire
By PRN NewsWire
OTTAWA, May 19, 2015 /CNW/ – To address competition concerns in the supply of insulated metal panels used in the building industry, the Competition Bureau has reached an agreement with Kingspan Group Limited as part of its proposed acquisition of business rival Vicwest Inc., a supplier of exterior building products.
Under the consent agreement, Kingspan will be required to sell Vicwest’s manufacturing facility in Hamilton, Ontario.
Following its review, the Bureau concluded that Kingspan’s acquisition of Vicwest would likely result in a substantial lessening of competition for the supply of insulated metal panels in Ontario by eliminating the competition between Kingspan and Vicwest. To address the concerns expressed by the Bureau, Kingspan agreed to sell the Hamilton facility.
The Commissioner of Competition has the sole discretion to approve a buyer and will only do so if he concludes that a buyer will provide effective competition in Ontario.
— Kingspan is a global manufacturer and seller of building products, including insulated metal panels and other building envelope products, insulation boards and raised access floors. — Vicwest is a supplier of exterior building products for all segments of the construction industry across North America. — Under their proposed merger agreement, Kingspan would acquire Vicwest and would then sell the Vicwest Westeel division (related to agriculture) to Ag Growth International Inc., a manufacturer of grain handling, conditioning and storage equipment. — Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.
“Our review concluded that Kingspan’s acquisition of Vicwest would substantially lessen competition in the supply of insulated metal panels in Ontario. Kingspan worked cooperatively and quickly with the Bureau to find a solution to the concerns expressed. With the sale of the Hamilton operations, insulated metal panels customers such as installers, general contractors, and commercial and industrial building owners will benefit from competition when buying insulated metal panels.”Jeanne Pratt,Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch
A copy of the consent agreement will be available shortly on the Competition Tribunal website.
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