January 7, 2021
Procter & Gamble, Billie pull merger following FTC complaint
THE WHAT Procter & Gamble and women’s personal care brand Billie have axed their planned merger following a complaint that was filed by the U.S. Federal Trade Commission in December, according to a report by Reuters.
THE DETAILS Aiming to stop the deal, Ian Conner, Director of the FTC’s Bureau of Competition, said in a statement, “Billie is a direct-to-consumer company whose advertising targets customers who are tired of paying more for comparable razors. The FTC voted to challenge this merger because it would have eliminated dynamic competition from Billie.”
Taking umbrage with P&G’s effort to eradicate competition on the market, thus giving the ability to drive up price, Conner continued, “As its sales grew, Billie was likely to expand into brick-and-mortar stores, posing a serious threat to P&G.
“If P&G can snuff out Billie’s rapid competitive growth, consumers will likely face higher prices.”
THE WHY Procter & Gamble took to a joint statement to voice their disappointment regarding the FTC lawsuit.
It read, “We were disappointed by the FTC’s decision and maintain there was exciting potential in combining Billie with P&G to better serve more consumers around the world. However, after due consideration, we have mutually agreed that it is in both companies’ best interests not to engage in a prolonged legal challenge, but instead to terminate our agreement and refocus our resources on other business priorities.”
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