Reckitt Benckiser’s K-Y Jelly buy on slippery territoryComments Off on Reckitt Benckiser’s K-Y Jelly buy on slippery territory
Britain’s competition watchdog said the FTSE 100 giant’s attempt to buy K-Y Jelly from US rival Johnson & Johnson “could lead to higher prices for personal lubricants”.
Phil Evans, inquiry chair at the Competition and Markets Authority, said: “On balance, there seems to be enough of an overlap in the market for personal lubricants for there to be a realistic prospect of consumers facing less competition and possibly higher prices if the two biggest brands come under single ownership.”
While the move may come as a relief to some people across the country, the deal could still go through if Reckitt is willing to reach a compromise with the regulator.
The options include a forced sale of K-Y’s UK business. News of the potential takeover emerged last year.
Although the price was not disclosed, analysts believe the brand is likely to cost Reckitt about $400 million (£256 million).
A final decision is expected to be made by the watchdog before August 18.