Commission clears Coty’s acquisition of P&G brands

Commission clears Coty’s acquisition of P&G fragrance and cosmetics brands

The Commerce Commission has given clearance for Coty Inc. (Coty) to acquire a significant part of the global hair care, colouring and styling, colour cosmetics and fragrance businesses of The Procter and Gamble Company (P&G).

Coty and P&G are large international suppliers of hair and beauty products. In New Zealand, both parties’ products are currently distributed by the same company.

The Commission’s investigation focused on nail products and men’s prestige fragrances, as there was limited New Zealand overlap among the companies’ other cosmetic, hair care and body care product lines.

The Commission is satisfied that the acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets.

Commission Chairman Dr Mark Berry said, “The affected markets contain a wide variety of brands, significant product turnover, and many active participants. We do not consider that Coty will gain substantial market power through this transaction, due to the ability of retailers and consumers to substitute to other products or source the products from elsewhere.”

A public version of the written reasons for the decision will be available shortly on the Clearances Register.

ENDS

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