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EU Clears Coty-P&G Deal

There's still plenty of competition in beauty.


By: Tom Branna

EU Clears Coty-P&G Deal

The European Commission has approved Coty Inc's planned acquisition of Procter & Gamble's beauty products businesses by Coty after concluding the market competition would remain sufficiently strong. Coty will buy P&G's perfume, hair care and make-up businesses for $12.5 billion in the biggest cosmetics merger in recent history.

Once the deal is done, Coty will become the No. 1 perfume maker in the world ahead of L'Oreal and they No. 3 makeup manufacturer behind L'Oréal  and Estée Lauder. It would run the perfume licenses of Gucci and Hugo Boss as well as make-up brands such as Max Factor, more than doubling its size with combined sales of more than $10 billion.

The Commission said that consumers would continue to have a large array of choices in fragrances such as Avon, L'Oréal and LVMH and in color cosmetics, such as L'Oréal and Cosnova.

“The Commission concluded that strong independent players would remain active in all the concerned markets,” the Commission, which rules on competition matters in the European Union, said in a statement.

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