EU Clears €3.4 bn P&G Deal For German Merck's Consumer Health Business Unit
EU antitrust regulators have approved Procter & Gamble's €3.4 billion ($3.9 billion) acquisition of Merck KGaA's consumer health unit, saying on Tuesday that they had no competition concerns.
The takeover would add vitamin brands such as Seven Seas to a P&G portfolio that includes Pampers diapers and Gillette razors, while boosting its presence in Latin America and Asian markets.
A Wave Of Consolidation
The sector has undergone a wave of consolidation in recent years as companies bulk up product ranges and businesses in other markets, but the European Commission said that a preliminary review of the deal found no serious issues.
"The transaction gives rise to a limited number of horizontal overlaps for which the Commission found, following its market investigation, that sufficient competition will remain after the transaction," the Commission said in a statement.
In July, the company's quarterly sales fell below Wall Street estimates following a disappointing performance at its grooming unit, which makes Gillette razors and shaving products.