WASHINGTON, D.C. — A proposed $17 billion acquisition of TopBuild Corp. by QXO is drawing scrutiny from antitrust advocates, who warn the deal could further consolidate the building materials market and increase costs across the construction supply chain.
The American Economic Liberties Project on May 1 called on federal and state regulators, including the Federal Trade Commission, to investigate the transaction. The group also urged state attorneys general, including William Tong and James Uthmeier, to closely review the potential competitive impacts.
TopBuild, headquartered in Florida, is the largest distributor and installer of insulation and related building products in North America. If completed, the acquisition would significantly expand QXO’s footprint, positioning it as a dominant player in insulation and waterproofing and the second-largest firm in roofing distribution.
“This deal is a textbook roll-up that would let a single buyer use sheer scale to further exacerbate housing affordability and squeeze out smaller players,” said Laurel Kilgour. “When dominant firms can demand bigger rebates and better terms simply for being bigger, it’s not efficiency. It’s leverage that gets passed through the supply chain as fewer choices and higher costs for builders and ultimately working Americans. With construction input prices already up sharply since the pandemic, antitrust enforcers should be deeply skeptical of a merger that accelerates consolidation and tilts the market even further toward a handful of powerful intermediaries.”
Advocates argue that further consolidation in the building materials sector could reduce competition, limit supplier diversity, and raise prices for contractors and developers already grappling with elevated input costs.
The proposed deal marks the largest acquisition to date for QXO, a company launched in 2023 with a strategy centered on rapid growth through mergers and acquisitions. The firm has already completed several major transactions, including the purchase of Beacon Roofing Supply and Kodiak Building Partners.
QXO CEO Brad Jacobs has emphasized the company’s goal of leveraging scale to secure better pricing from manufacturers.
“We will get, because we deserve, a better price from the manufacturers. Bigger customers get bigger discounts, bigger rebates than the smaller ones,” Jacobs said.
Industry analysts note that 2025 marked the strongest year for mergers and acquisitions in the building materials sector in more than a decade, with a surge in large-scale deals signaling continued consolidation ahead.
Critics, however, warn that such consolidation could shift bargaining power toward a smaller number of large intermediaries, potentially affecting pricing dynamics and competition throughout the supply chain.
The American Economic Liberties Project said the deal underscores broader structural changes in the industry, where increased concentration may have downstream effects on housing affordability and market access for smaller firms.
Originally reported by Economic Liberties.
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