Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Canada Competition Bureau accepts sale of plant as condition of Kingspan-Vicwest deal, (May 20, 2015)

By Michael Menzhuber, J.D., LL.M.

The Canada Competition Bureau has reached a consent agreement with Kingspan Group Limited, addressing competition concerns over Kingspan’s proposed acquisition of Vicwest, Inc., the agency announced yesterday. Under the consent agreement, Kingspan will be required to sell Vicwest’s manufacturing facility in Hamilton, Ontario. The Commissioner of Competition will have the sole discretion to approve a buyer and will do so only 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. The Bureau determined 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.

In response to the Bureau’s concern, Kingspan agreed to sell the Hamilton facility. Under the 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.

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