The UK’s Competition & Markets Authority has waved through Reckitt Benckiser’s acquisition of the K-Y brand following consultation after it agreed to licence the business in the UK.
The CMA previously concluded that the merger “may be expected to result in a substantial lessening of competition and higher prices” as both Reckitt-owned Durex and K-Y supply personal lubricants to UK retailers.
K-Y and Durex hold almost three quarters of the market share in supermarkets and national pharmacies
The government body has concluded the merger should be allowed to proceed if, prior to completion, Reckitt licenses the K-Y business to a third party for eight years.
The CMA said the eight year period would “allow time for a competitor to develop a new brand to rival the Durex range that could gain access to supermarkets and national pharmacy chains”.
Reckitt agreed to by the K-Y lubricant brand from Johnson & Johnson in March 2014.