Tissue merger gets European go ahead

SCA’s acquisition of Procter & Gamble’s European tissue brands has been cleared by the European Commission at Phase I. The Commission’s investigation focused on the impact of the transaction on the supply of toilet paper, kitchen towels and hankies and facials in Germany and Austria. The Commission found that retailer buyer power, underpinned by the credible threat to switch from branded to private label products, would prevent the parties from setting higher wholesale prices in the toilet paper and kitchen towel categories. Concerns regarding hankies and facials were resolved via a divestment remedy. RBB advised SCA alongside Howrey.