FTC Says Henkel Deal Would Merge ‘Coke and Pepsi’ of Adhesives

RegulationCorporate Action

โดย Bloomberg·Read original

Summary · why it matters

The Federal Trade Commission urged a judge to block Henkel AG's $725 million purchase of part of Pittsburgh Paint Co., saying the deal would harm competition in the liquid-adhesive market by combining two of its biggest players. An FTC lawyer described the companies as the Coke and Pepsi of the adhesive world, noting that Henkel's Loctite and LePage brands and Pittsburgh Paint's Liquid Nails have long viewed each other as their main competition. Henkel's lawyer countered that the two companies hardly compete at all, with Liquid Nails focused on lower-priced adhesives and Loctite on higher-end products, and argued that large retailers have bargaining leverage and barriers to entry are low. The trial, which is being overseen by US District Judge Katherine Polk Failla without a jury, is expected to take several weeks.

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