Reckitt Nears Purchase of Schick

Anglo-Dutch consumer products group Reckitt Benckiser is edging towards victory in the auction for Schick-Wilkinson Sword, the world’s second-biggest razor maker after Gillette. Schick is a distant No. 2 to Gillette, with 20% of the global wet shaving market against Gillette’s 70%. Reckitt last week submitted a final bid, thought to be about $850 million, for the razors business, which is being sold by Pfizer.

Although several corporate and financial bidders have dropped out, people close to the situation warned it remained fluid, with rumors of at least one bid close to Reckitt’s. That may have come from Philips of The Netherlands, which is understood to have entered the contest late and considered unlikely to win.

Pfizer put Schick up for sale in the summer along with Adams Confectionery, maker of Dentyne and Hall’s cough sweets.

Schick would be Reckitt’s first big acquisition since it was formed through the 1999 merger of Britain’s Reckitt & Colman and Benckiser of The Netherlands.

It has the financial resources-and the market has been waiting to see how Bart Becht, the chief executive, would use them – but analysts say buying Schick would be a gamble. Industry observers say Reckitt’s strong management and handling of its own cross-border merger, plus a reputation for innovation, could persuade shareholders it is the right owner for Schick.