Belgian foamer, Recticel, which is at the centre of an unsolicited offer from boardmaker, Irish building material manufacturer Kingspan Group needs more information to respond.
In a statement released 18 April, Recticel said the offer is 'lacking a number of critical information items to allow its board of directors to make an informed decision.'
Kingspan announced 16 April that it had made an offer to buy Recticel’s insulation and flexible foams divisions for €700m.
Recticel described Kingspan's offer as 'unsolicited and non-binding.'
In particular, the Belgian company wants to know how Kingspan plans to mitigate the antitrust risks associated with its offer.
Recticel also wants to know who the third-party that could buy the flexible foams business is and how Kingspan intents to mitigate those potential antitrust risks.
Finally, the Belgian company wants to know what the tax situation of its shareholders would be when the terms of the offer is fully disclosed and what the tax implications for shareholders is.
Antitrust will be a major part of whether the deal could be passed by regulators in Europe. According to data underlying the most recent UTECH Rigid Foam Europe 2018 map, Recticel had four sites in Europe: Wevelgem, Belgium; Bourges, France; Sostanji, Slovenia; and Stoke-on-Trent, UK.
The only country on that list where Kingspan does not have a factory is in Slovenia.
Kingspan has a total of 19 foaming plants across Europe.