Irish insulation and building materials specialist Kingspan is eyeing a possible takeover of Conqueror New Zealand’s manufacturing business, it has emerged.
Cavan-based Kingspan already has a business in the antipodean country selling insulation, panels and roofing materials.
It emerged on Monday that it is bidding for the insulated panel and insulation boards business of local player, Conqueror New Zealand Ltd.
The Irish company did not comment on Monday, but New Zealand’s Commerce Commission issued a statement saying that Kingspan Ltd had applied for clearance to acquire the Conqueror business.
The Commerce Commission is New Zealand’s competition law regulator. The authority said that it intends deciding on the application by December 18th next and invited any interested parties to make submissions on the proposed deal.
The commission added that it would clear a proposed merger if the authority was satisfied that the deal was unlikely to substantially lessen competition in its market.
A formal notice on the commission’s register states that it opened the case on October 20th, indicating that Kingspan sought clearance last month.
Conqueror New Zealand manufactures panels with rigid foam cores used for insulation at a factory in Christchurch. Local reports say that Conqueror will retain its wholesale insulation supply business, which utilises PIR foam core material supplied by Kingspan.
New Zealand law bans mergers and takeovers likely to substantially lessen competition on price, service, innovation and quality in any market.
Regulators assess market share and power when deciding on how it could affect competition. Consequently, the New Zealand commission often reviews proposed mergers or takeovers.
Once a transaction is cleared, it cannot be challenged in court on competition grounds for one year.
Kingspan is regularly on the hunt for acquisitions. The Irish group is poised to offer around €229 million for the outstanding shares in Stockholm-listed Nordic Waterproofing that it does not already own.
Kingspan had bought 30 per cent of the Scandinavian player’s shares by the time it announced the offer last month. The offer itself is set to open on November 23rd and close for acceptance in February.
