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.