European Commission approves Coty’s plan to purchase P&G’s beauty businesses
The European Commission has approved Coty’s planned acquisition of P&G’s beauty businesses. The organisation ruled that competition in the industry would not be threatened by the deal. Coty already has approval for the deal in the US.
The Commission stated: "The European Commission has approved under the EU Merger Regulation the acquisition of Procter & Gamble's beauty products businesses by Coty. The Commission concluded that strong independent players would remain active in all the concerned markets.”
The commission ruled that competitor companies including Cosnova, L’Oréal, Avon, LVMH, Puig and Unilever, among others, would continue to give consumers a vast choice following the deal. It stated that competition would remain “sufficiently strong” to prevent any price increases for consumers.
Coty is due to complete its purchase of P&G’s perfume, hair care and make-up businesses for $12.5bn in the latter half of this year. A detailed timeframe for the merger is expected to be announced in May. The transaction is thought to be one of the biggest purchases the beauty industry has seen in recent years and will more than double Coty’s current size.
The deal will make Coty the largest perfume brand ahead of L’Oréal and the third biggest make-up brand, just behind L’Oréal and Estée Lauder.