Brussels-based Recticel NV/SA, a maker of urethane insulation and flexible foams, says it needs more information before it can respond to an unsolicited acquisition offer from building products maker Kingspan Group.
In an April 18 statement, Recticel said the offer is "lacking a number of critical information items to allow its board of directors to make an informed decision" and described Ireland-based Kingspan's offer as both "unsolicited and non-binding."
In particular, the Belgian company wants to know how Kingspan plans to mitigate antitrust risks associated with its offer. Recticel also wants the identity of a third party that would buy the flexible foams business from Kingspan after the proposed sale as well as how Kingspan intends to mitigate potential antitrust risks.
In addition, Recticel wants to know the implications related taxes for its shareholders.
Kingspan announced April 16 that it offered to buy the Recticel business for 700 million euros ($791 million).
Antitrust will be a major part of whether the deal could be passed by regulators in Europe, according to the companies.
According to data from Urethanes Technology International, Recticel has four sites in Europe: Wevelgem, Belgium; Bourges, France; Sostanji, Slovenia; and Stoke-on-Trent, England. Kingspan also has plants in all of those countries with the exception of Slovenia. It has a total of 19 foaming plants across Europe.