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News Displaying items by tag: competition

Gypsum industry news

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New Zealand government reviews competition rules

06 December 2024

New Zealand: The government has launched a ‘major’ review of competition rules to combat monopolies and improve economic productivity. Fuseworks Media News has reported that the review is partly a response to a gypsum wallboard supply ‘crisis’ in 2022.

Commerce and Consumer Affairs Minister Andrew Bayly said "We have launched a two-pronged approach: 1 – to update the competition settings in the Commerce Act to ensure our legal framework is right; and 2 – to review the governance and effectiveness of the Commerce Commission to ensure our regulatory and enforcement framework is right."

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Winstone Wallboards prepares defence against alleged uncompetitive rebates

23 August 2024

New Zealand: Winstone Wallboards’ parent company Fletcher Building says that it will ‘vigorously defend’ against charges by the New Zealand Commerce Commission of alleged anti-competitive customer rebates between 2017 and 2022. RNZ News has reported that rebates of the type allegedly deployed by Winstone Wallboards are ‘common’ competitive manoeuvres in the sector. The Commerce Commission says that it will file an action before the end of October 2024.

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Government designates Knauf Gips Buxoro ‘dominant’ in Uzbek gypsum wallboard market

01 August 2024

Uzbekistan: The Committee for the Development of Competition and Protection of Consumer Rights has classified Knauf Gips Buxoro as a ‘dominant company’ in the gypsum wallboard market. An analysis by the committee ascertained that the producer’s market share exceeds 40%. The designation will require Knauf to conform to specific rules regarding pricing, supply and conditions that affect competition.

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Philippines Department of Trade and Industry investigates gypsum wallboard imports from Thailand

12 December 2023

Philippines/Thailand: The Philippines Department of Trade and Industry (DTI) has launched an investigation into imports of Thai gypsum wallboard. The investigation forms the first stage in the process of potentially implementing a tariff on gypsum wallboard entering the Philippines from Thailand. The investigation will seek to establish whether dumping of the product occurred between January and May 2023, and whether the wallboard industry of the Philippines experienced any injury due to imports from Thailand between 2019 and 2022. The Philippine Star newspaper has reported that the DTI accepted an application for an investigation from Knauf Gypsum Philippines on 24 November 2023.

The DTI preliminarily stated that “There was a substantial margin of dumping of gypsum board from Thailand for the period January to December 2022 based on the domestic wholesale and export prices as gathered by the gypsum board industry.” It added “Based on the aforementioned, there is a prima facie evidence that the domestic industry suffered material injury before the acquisition efforts as evidenced by the low market share of the domestic industry ranging from 23% to 40%, operating losses and price suppression from 2019 to 2021 and price undercutting in 2021.”

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CADE challenges Knauf's proposed acquisition of Trevo

11 October 2023

Brazil: The Administrative Court of the Brazilian Administrative Council of Economic Defence (CADE) has submitted for review the proposed acquisition by Knauf Brazil of a gypsum wallboard plant operated by Trevo Industrial de Acartonados. The Office of the Superintendent General (SG) noted after an investigation that the transaction would increase market concentration, exceeding the limits set out in the guides of CADE and the competition law. The gypsum wallboard market in Brazil has four suppliers, including Knauf and Trevo.

The review pointed out that imports are “unusual and cannot be considered a source of competition if Knauf raises the prices after merging with Trevo.” The SG also warned that other factors could lead to potential market collusion such the lack of history of competitive rivalry in terms of price, quality, or any other difference amongst the products.

Following its challenge to the proposed acquisition, the SG has submitted the case to a tribunal. At this stage a commissioner will review it and include it in the agenda for further adjudication.

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Saint-Gobain Rigips' merger with Dalsan Alçi cleared to proceed

17 March 2023

Türkiye: Competition authorities have approved France-based Saint-Gobain's merger of its Türkiye-based subsidiary Saint-Gobain Rigips with Dalsan Alçi. Regulatory News has reported that the companies have a combined gypsum wallboard capacity of 100Mm2/yr and sales of Euro160m. Dalsan Alçi is currently in the process of acquiring fellow producer Manisa Turgutlu.

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Winstone Wallboards to drop use of quantity-based rebates as Commerce Commission starts new investigation

12 December 2022

New Zealand: Fletcher Building says it will stop using retroactive quantity-based rebates after it learned that the Commerce Commission had started an investigation into the practice in November 2022. The owner of Winstone Wallboards defended the use of such rebates and said they were common in the sector. However, it added that it was showing ‘leadership’ and had considered the commission’s preference that it not use quantity rewarding rebates. It will instead switch to a flat pricing model based on volume.

The Commerce Commission published its final report look at general residential building supplies following the release of a draft in August 2022. It set up nine recommendations to improve competition and supply of such products generally. Two main factors it identified as making it difficult for competing products to be introduced and expand in the market were the building regulatory system and quantity-forcing rebates paid by established suppliers to merchants. It noted that, under certain conditions, these types of rebate could reinforce the way the existing regulatory system was making it harder for new or competing products to access the market.

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Croatian Competition Commission investigates Knauf

10 November 2022

Croatia: The Croatian Competition Commission (CCA) has started investigating Knauf for alleged market distorting behaviour from 2017 to 2021. In a statement the regulator said that the wallboard producer, has been accused of abusing, “…its dominant position by applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage. Concretely, the complainant claimed that Knauf applied different rebate schemes (discounts) and trading conditions that were not based on objectively justified criteria, which have directly resulted in distortion of competition in the preliminary defined relevant market in drywall gypsum boards.” The CCA will examine whether Knauf’s behaviour breached Articles 8 and 13 of the Croatian Competition Act.

Germany-based Knauf operates one gypsum wallboard plant in the country at Knin.

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Sika hopes to complete acquisition of MBCC Group in the first half of 2023

31 August 2022

Switzerland/UK: Sika says it plans to complete its planned acquisition of MBCC Group in the first half of 2023 following the decision by the UK Competition and Markets Authority (CMA) to further investigate the merger. Previously the construction chemicals company intended to close the transaction by the end of 2022. Sika signed a deal to buy MBCC Group, formerly BASF Construction Chemicals, in November 2021.

Thomas Hasler, the chief executive officer of Sika, said "Sika has already received unconditional regulatory approval across a number of jurisdictions, including Japan, China, Brazil, South Africa, Saudi Arabia, Turkey and Thailand. For a transaction of this magnitude a detailed analysis is not unusual. The adapted timeline for the closing does not impact the strategic attractiveness of the transaction. It remains highly accretive, and our expectation that it will generate annual synergies of Euro160m - 185m is unchanged."

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UK competition body launches merger inquiry into acquisition of GCP Applied Technologies by Saint-Gobain

26 July 2022

UK: The Competition and Markets Authority (CMA) has formally launched the first phase of a merger inquiry into the proposed acquisition by Saint-Gobain of GCP Applied Technologies. The competition body said that proposed merger had met the threshold for investigation under UK law. The CMA will now decide whether to refer the merger for further scrutiny by 21 September 2022.

Saint-Gobain said it had agreed to buy construction chemicals producer GCP Applied Technologies for Euro2bn in late 2021 with a conclusion date to the transaction by the end of 2022.

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