Alliance between P&G and Beiersdorf deemed beneficial

According to Euromonitor, a merger between the two personal care giants could be mutually beneficial

Personal care giants Procter & Gamble (P&G) and Beiersdorf could benefit from potential merger activities, according to market analyst Euromonitor. If the two companies were to merge, P&G would receive a boost in skin care, particularly in emerging countries, while with P&G’s backing, Beiersdorf could become more competitive. “Even within facial care, P&G would be able to further diversify into department stores and pharmacies through La Prairie and Eucerin, respectively,” said Euromonitor.

Should a merger take place, Euromonitor predicts that P&G could see a rise in skin care sales in all geographical areas of the world, particularly the Middle East and Africa (from around 4.5% to around 20% of the market) and western Europe (from around 3% to around 18%). A merged P&G/Beiersdorf could even knock L’Oréal off the top spot for skin care, especially in emerging markets, while Beiersdorf would also bring hand care into P&G’s stable of products.