Reckitt Benckiser’s K-Y Jelly buy on slippery territory

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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.

Source Article from http://www.standard.co.uk/business/business-news/reckitt-benckisers-ky-jelly-buy-on-slippery-territory-10269514.html

May 23, 2015 |
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