Brussels, 01/06/2010 (Agence Europe) - On Monday 31 May, the European Commission decided to open an in-depth investigation into the planned acquisition by Anglo-Dutch consumer goods company Unilever of the body and laundry care businesses of Sara Lee Corp of the United States. The Commission's initial investigation showed that the transaction would bring together a number of very important and competitive brands, thus causing competition problems on several product markets including deodorants, skin cleansing and fabric care products.
The merger would lead to high combined market shares in several member states and create a clear market leader. It would, moreover, remove a strong alternative supplier in a number of deodorants, bath & shower and fabric care markets. In this respect, the in-depth investigation will allow the Commission to verify whether the proposed transaction would ultimately lead to higher prices for final consumers.
On 21 April, the Commission was notified of a proposed agreement whereby Sara Lee would sell Sara Lee Household and Body Care International to Unilever NV and Unilever PLC. The Commission now has until 5 October 2010 (90 working days) in which to establish whether the concentration would significantly impede effective competition within the European Economic Area (EEA). The parties have so far not proposed any remedies to alleviate Commission concerns.
This review is quite independent of an investigation on the proposed acquisition of Sara Lee air fresheners division by Procter & Gamble on a referral by several EU national competition authorities (EUROPE 10111). In this last case, the deadline for a first-phase decision is 17 June. (F.G./transl.jl)