Reckitt Benckiser gets green light to buy K-Y Lubricants
In December last year, the UK Competition and Markets Authority (CMA) has announced that Reckitt Benckiser's anticipated acquisition of Johnson & Johnson's K-Y brand will be referred for an in-depth phase 2 investigation unless acceptable undertakings are offered.
Following its initial phase 1 investigation, the UK Competition and Markets Authority (CMA) has found that the transaction gives rise to a realistic prospect of a substantial lessening of competition in the supply of personal lubricants to grocery retailers and national retail pharmacy chains.
Reckitt Benckiser (RB) and Johnson & Johnson (J&J) supply personal lubricants to a number of retailers, including grocery retailers and national pharmacy chains under the Durex and K-Y brands respectively. RB agreed to purchase the K-Y brand from J&J on 10 March 2014. ■