CMA accepts K-Y undertakings
The CMA has decided, following consultation, to accept undertakings regarding the licensing of the K-Y brand in the UK for 8 years.
Reckitt Benckiser and Johnson & Johnson (J&J) supply personal lubricants to a number of retailers under the Durex and K-Y brands respectively, and Reckitt Benckiser agreed to purchase the K-Y business from J&J in March 2014.
In its final report, the Competition and Markets Authority (CMA) concluded that the merger may be expected to result in a substantial lessening of competition and higher prices.
To remedy that concern, the CMA concluded that the merger should be allowed to proceed on condition that prior to completion Reckitt Benckiser agrees to license the K-Y business in the UK to a third party in line with the criteria set out in the final report.
Reckitt Benckiser and Johnson & Johnson agreed to offer the undertakings.
All information relating to this investigation can be found on the case page.