The Federal Trade Commission has stated that it is planning to block the USD 1.4 billion acquisition of Harry’s by Edgewell Personal Care, citing concerns over a rise in prices for the consumers. FTC stated on Monday that it had voted 5-0 for going ahead with their plans of blocking the merger deal. The FTC stated that Harry’s was a company that ensured the prices for the commodity came down and new innovations were introduced and the acquisition would affect the competition in the industry in a negative manner.
The FTC complaints that Edgewell and Procter & Gamble have held a “duopoly” in the industry and Harry’s was slowing growing into a competitor that could challenge the duopoly. FTC also complained that both Edgewell and Procter & Gamble increased the prices of products slowly without any changes in the production cost or demand. The hindrance from FTC is dubbed disappointing by Harry’s owners as well, who too want the merger deal to go ahead. FTC had been against the deal ever since it was proposed and always asked tough questions regarding the probable prices of razors after the deal is completed. Jeff Raider, one of the co-founders of Harry’s, even wrote a blog post explaining how Edgewell’sbetter resources would help Harry’s keep the prices the same or even lower after the merger is completed.
Talking of mergers, the much hyped merger between T-Mobile and Sprint seems to be falling apart now as the federal judges are likely to reject the merger. As per the report published by the Wall Street Journal, attorneys general from over twelve states have filed a lawsuit to block the merger deal between T-Mobile and Sprint amid concerns that the deal could affect competition in the telecom industry.