UK: Regulators question KY and Durex lubricant deal

The UK Competition and Markets Authority has expressed concern about market dominance in the personal lubricant market following the purchase of the KY brand by Reckitt Benckiser from Johnson & Johnson – it is believed that the deal could lead to an increase in prices.

In a statement the Commission said that following the deal, Reckitt Benckiser would control 75 percent of this market in the UK through the KY and Durex brands, thus making the market less liquid than it perhaps should be.

The Commission is concerned that while there is some degree of personal loyalty to these brands, this loyalty might slip if they were controlled by one owner. The KY brand is believed to be worth close to $100 million.

“The merger could lead to a substantial reduction in competition, possibly through higher prices, making customers buying these products in grocery retailers and national pharmacy chains worse off,” the CMA said.

Full content: Bloomberg

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