EU Fines Kingspan €40 Million in Acquisition Review

The European Commission has imposed a €40 million fine on Irish company Kingspan for providing incorrect and misleading information during a 2021 acquisition review.

The Commission stated that the fine was divided across four separate violations, at €10 million per infraction, relating to tracking penetration rates, bidding records, management involvement, and R&D disclosures.

The case dates back to the Commission's 2021 review of Kingspan's plan to acquire its Slovenian competitor Trimo, and reports indicate that the company intends to appeal the decision.

This decision concerns companies whose acquisition deals undergo European review, as it serves as a reminder that submitting misleading data to the Commission is a standalone violation, and that a fine can be imposed even if the deal was not rejected in the first place.

What do these terms mean?

European Merger Regulation: A system of European rules requiring companies to notify the Commission of major mergers and acquisitions and obtain its approval prior to completion.

Penetration rate: The share of a product or company out of the total market or customer purchases, used to measure its competitive strength.

Research and Development (R&D): Activities in which a company invests to develop new products and technologies, with data considered sensitive in evaluating competition.

Appealing the decision: A legal procedure before the Court of Justice of the European Union requesting the annulment or reduction of the fine following the issuance of the Commission's decision.