EU clears Colgate's acquisition of Unilever's Sanex

EU clears Colgate's acquisition of Unilever's Sanex

2011-06-07 07:29:39 GMT+7 (ICT)

BRUSSELS (BNO NEWS) -- The European Union (EU) on Monday announced that its Commission had cleared Colgate-Palmolive Group's proposed €672 million (approximately $980 million) acquisition of Unilever's Sanex business.

The EU said that the Commission examined the competitive effects of the proposed acquisition in the affected markets for the sale of bath and shower products, soaps and deodorants and it concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it.

As a result, the Commission approved the proposed acquisition under the EU Merger Regulation, stating that strong competitors would still allow customers to have sufficient alternative suppliers in all markets concerned.

The proposed acquisition was first announced on March 23, but the Commission was notified of the transaction on April 28, as Colgate continues its strategy to focus on its higher-margin oral care, personal care and pet nutrition businesses.

Sanex is a premium-priced personal care brand positioned around healthy skin and strong market share positions in Europe. This acquisition is expected to strengthen Colgate's important personal care business in Europe.

Sanex is a multi-category personal care brand with 2010 net sales of €187 million ($273 million), primarily in Western Europe. Liquid body cleansing and deodorants each represent nearly 50 percent of the business.

In connection with the Sanex acquisition, Colgate had also previously agreed to sell its laundry detergent business in Colombia to Unilever for $215 million.

In 1989, the Commission was given the power to assess mergers and acquisitions involving companies with a turnover above certain thresholds. Its duty is to prevent concentrations that would significantly impede effective competition in the European Economic Area or any substantial part of it.

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