Brussels, 06/09/2007 (Agence Europe) - On 6 September, the European Commission approved the proposed acquisition of the European tissue business of the US company Procter & Gamble by Sweden's SCA. Both companies are major suppliers of tissue paper products. The Commission's decision is conditional upon SCA's commitment to divest its “Softis” brand handkerchief/facials business.
SCA is a Swedish company active in the personal care sector across Europe, while Procter & Gamble's European tissue business supplies toilet paper, household towels and handkerchiefs/facials in Europe. Its main brands are Bounty, Charmin, Tempo, Bluemia and Bess. The Commission's investigation examined the production and supply of handkerchiefs/facials in Austria and Germany, where the concentration would have combined the two major brands (P&G's “Tempo” and SCA's “Softis”), thus weakening competition. To resolve the problem, SCA agreed to divest its handkerchief/facials brand “Softis” in Germany and Austria, along with production facilities, converting lines and sales and marketing personnel, and the “Softis” handkerchief/facial brand in all other countries where SCA is currently active - mainly Central and Eastern Europe - to enhance the viability of the divested business. The Commission concluded, then, that the transaction, as modified by this commitment, would not significantly impede effective competition in the European Economic Area or any substantial part of it. (cd)