The sale of the Building Solutions divisions was first announced last October by SIG as part of its cost-cutting and restructuring strategy.

But the deal attracted the attention of watchdogs at the Competition and Markets Authority who launched an investigation.

Kingspan is the leading provider in the UK of standard foam sandwich panels commonly used as insulated cladding on commercial and industrial buildings.

Building Solutions also sells a range of insulation and specialist construction products through a variety of businesses, including Steadmans, Trimform, Advanced Cladding and United Roofing Products.

SIG confirmed today that the curent sale and purchase agreement expires on 7 July and the CMA investigation will not conclude until October.

SIG 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.”