Kingspan Faces CMA Probe over Coverworld Acquisition

Deal News | Jun 25, 2025 | EIN

Kingspan Faces CMA Probe over Coverworld Acquisition

Kingspan, a company that produced a significant portion of the insulation used in the infamous Grenfell Tower, faces scrutiny from the Competition and Markets Authority (CMA) over its planned acquisition of Coverworld. The CMA, which has opened an initial invitation for comments, is in the early stages of assessing whether the acquisition could create a merger situation that substantially lessens competition in the UK market. Coverworld, known for its steel cladding products, reported a turnover drop in its latest accounts, attributed mainly to declining global steel prices. The probe follows prior criticism of Kingspan related to its products' use in the Grenfell fire and previous threats of banning the firm from UK public contracts. Stakeholders have until July 9 to submit comments on the acquisition.

Sectors

  • Construction Materials
  • Regulatory and Compliance

Geography

  • United Kingdom – The inquiry by the CMA pertains to the potential impact on competition within the UK market.

Industry

  • Construction Materials – Both Kingspan and Coverworld are involved in the manufacture and supply of construction materials, such as insulation and steel cladding.
  • Regulatory and Compliance – The article discusses regulatory scrutiny by the CMA, focusing on compliance with competition laws.

Financials

  • 26.31M – The turnover of Coverworld for the year ending 30 June 2024.

Participants

NameRoleTypeDescription
KingspanBidding CompanyCompanyAn international company involved in the manufacturing of insulation and building envelope materials.
CoverworldTarget CompanyCompanyA Chesterfield-based producer and supplier of single and twin skin coated steel cladding systems.
Competition and Markets Authority (CMA)Regulatory BodyGovernmentThe UK authority responsible for promoting competition for the benefit of consumers, both within and outside the UK.