Bidding War for Wella Looms as Henkel Buys Stake

A bidding war among the world’s leading cosmetics groups for hair care group Wella AG looked imminent on Tuesday after one suitor, Germany’s Henkel, bought a stake in the company.

Henkel’s purchase of a nearly 7% stake in its smaller rival came after reports that the Stroeher family, which controls nearly 80% of Wella, was finally prepared to sell and that Procter & Gamble had made an approach.

“This move by Henkel is an attempt to force the family to run an auction for Wella rather than sell outright to P&G,” one industry source familiar with the situation told Reuters.

Henkel, producer of Persil washing powder, Loctite glue and the Schwarzkopf hair care brand, had long been interested in Wella to secure its future growth and become a dominant player in this corner of the cosmetics market.

Industry sources say Henkel’s approach last October and signs that Wella family were open to a sale lured P&G, eager to catch up with global number one cosmetics group L’Oreal. A newspaper said on Tuesday P&G could make an offer in the coming days.