CMA merger update: Kingspan Coverworld

CMA merger update: Kingspan Coverworld

The UK Competition and Markets Authority (CMA) has cleared Kingspan’s acquisition of steel cladding supplier Coverworld, marking a strategic move for the insulation and building solutions specialist. This approval comes after an inquiry launched in July to assess the deal’s impact on market competition.

Kingspan, headquartered in Cavan, Ireland, operates in over 80 countries and reported strong first-half results on August 8, 2025. Revenue increased by 8.3% to €4.5 billion, with trading profit up by 5% to €443 million [1]. Despite these positive figures, the company lowered its full-year trading profit forecast to €950 million, a 3.5% decrease from previous projections of €985 million. This adjustment reflects tough trading conditions and a €650 million share buyback program aimed at boosting shareholder value.

The acquisition of Coverworld, a Chesterfield-based producer of coated steel cladding systems, is expected to strengthen Kingspan’s market position despite recent challenges in the steel sector. The CMA’s approval indicates that the merger will not significantly impact market competition.

Gene Murtagh, Kingspan’s chief executive, commented on the company’s performance and the acquisition, stating, “Activity levels have firmed as the year progressed and conditions remain relatively stable, albeit with outlook varying by market and segment and supported by continuing structural growth opportunities.”

This acquisition is a significant step for Kingspan, aligning with its strategy to expand its product offerings and market presence. The CMA’s clearance ensures that the merger will proceed without hindrance, allowing Kingspan to integrate Coverworld’s capabilities into its operations.

References:
[1] https://constructionwave.co.uk/2025/08/08/kingspan-shares-steady-as-lower-full-year-profit-forecast-meets-share-buyback-announcement-and-watchdog-clears-acquisition/