EU Gives P&G the Go Ahead for Wella Takeover

The European Commission has given Procter & Gamble Co. permission to take over German hair care group Wella, the U.S. group’s largest deal ever, a source familiar with the situation said on Tuesday.

P&G, the leading U.S. consumer products company whose products include Tide detergent and Herbal Essences shampoo, has said the deal moves it into the $10 billion salon products business and strengthens its coloring and styling products business in Europe. The source told Reuters that P&G would license one of Wella’s hair care products to meet competition concerns.

The $5.7 billion deal is the largest in P&G’s history, exceeding the $4.95 billion P&G paid for Clairol in 2001. The deal gives Wella the marketing and product development firepower to take on France’s L’Oreal, the hugely successful cosmetics giant that is regarded as a best practice benchmark in the sector.