£37.5m sale of panel firm called off by SIG in Sheffield due to market conditions

SIG said it had not been possible to agree terms for the extension of deal, which was held up by an investigation by the Competition and Markets Authority.

The probe into whether the sale would leave building contractors with too few suppliers in the UK was due to conclude in October.

But SIG’s agreement to sell subsidiary Building Solutions National to panel firm Kingspan expires on July 7.

A SIG spokesman said: “As a result of the prevailing market conditions, it has not been possible for the company and Kingspan to agree commercial terms for the extension of the agreement.

“Accordingly, the parties have agreed to terminate the agreement with immediate effect and the disposal therefore will not proceed.

“The company is currently reviewing a number of options regarding the Building Solutions business and will provide further updates when appropriate.”

SIG had hoped to sell the £60m turnover panel manufacturer to cut debt and focus on its core business.

But the Competition and Markets Authority was concerned it would leave Kingspan, the biggest foam sandwich panel firm in the UK, with Tata Steel as its only serious competition.

SIG plc is Sheffield’s biggest company by turnover with £2.7bn in 2018.

It announced the sale of Building Solutions in October as part of a review aimed at disposing of non-core businesses, focusing the Group’s portfolio and strengthening its balance sheet.

SIG operates across 585 branches in the UK and Ireland, and mainland Europe. Its core markets are insulation and interiors, roofing and exteriors and air handling.