EU Extends Review into P&G’s Wella Takeover

The European Union Commission, Brussels, Belgium, extended its antitrust review of U.S. consumer giant Procter & Gamble’s EUR5.5 billion takeover of Wella AG by two weeks, according to a Dow Jones Business News report.

The parties were due to find out this Thursday whether the EU Commission would clear the deal or subject it to an in-depth, four-month investigation. The deadline has now been pushed back to July 30. Experts said an extension of this kind usually means the parties have submitted changes within the first three weeks of the initial one-month review period.

The acquisition would extend P&G’s market presence from shampoos and conditioners to hair-coloring products and supplies for professional hair-care salons, as well as heighten the company’s growing rivalry with L’Oreal SA, the world’s biggest beauty company.

U.S. antitrust regulators have cleared the deal. But P&G faces a concerted battle from preference shareholders who are opposed to the deal terms. P&G is offering EUR92.55 for each share of common stock in the company, but only EUR65 for each preference share. The deal also calls for the assumption of EUR1.1 billion in debt.