McGuireWoods Brussels partner Matthew Hall is quoted by Global Competition Review on a UK Competition and Markets Authority (CMA) decision to
approve Reckitt Benckiser Group’s purchase of Johnson & Johnson’s K-Y personal lubricant brand. Published August 13 and titled “CMA applies remedy to
smooth Reckitt/K-Y deal,” the piece focuses on the CMA’s decision, as well as the remedy put in place to ensure that competitors are given time enough to
develop rival brands and access national retail and pharmacy chains following the deal’s closing.
“This was a worldwide acquisition with no assets dedicated to the UK, so divestiture as a remedy would have been disproportionate,” says Hall in quoted
material. “Licensing for a fixed period is common in similar consumer goods cases, allowing the licensee time to establish its brand.”
The deal, which will license the K-Y business to a third party for eight years, aims to protect consumers against inevitably higher retail prices resulting
from the acquisition.
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