EU antitrust regulators have approved Procter & Gamble's (P&G) €3.4 billion acquisition of Merck KGaA's consumer health unit, saying on Tuesday that they had no competition concerns.
The takeover would add vitamin brands such as Seven Seas to a P&G portfolio that includes Pampers diapers and Gillette razors while boosting its presence in Latin America and Asian markets.
No Serious Issues
The sector has undergone a wave of consolidation in recent years as companies bulk up product ranges and businesses in other markets, but the European Commission said that a preliminary review of the deal found no serious issues.
"The transaction gives rise to a limited number of horizontal overlaps for which the Commission found, following its market investigation, that sufficient competition will remain after the transaction," the Commission said in a statement.
Last month, P&G revealed that its quarterly sales fell below Wall Street estimates, as the consumer products company had a disappointing performance at its grooming unit that makes Gillette razors and shaving products.
Shares of Procter & Gamble fell 2% before the bell despite cutting prices on products in the grooming business by 3% to claw back market share lost to upstarts such as Dollar Shave Club.
News by Reuters, edited by Checkout, additional reporting by Aidan O'Sullivan. Click subscribe to sign up for the Checkout print edition.