INSECTICIDES : INVESTIGATION INTO SC JOHNSON'S BUY OF SARA LEE'S UNIT.

The proposed acquisition of the global household insect control business of Sara Lee by SC Johnson of the US could pose potential competition concerns in Spain, France, the Czech Republic, Belgium and Greece, where the parties' activities show significant overlaps. The European Commission therefore confirmed, on 28 December 2010, that it had opened an in-depth investigation into this matter.

The proposed transaction would combine two leading suppliers of household insecticides active in Europe with brands like Raid, Baygon, Catch, Vapona, Pyrel, Cruz Verde, Cucal and Bloom. Their household insecticide brands compete closely with each other in a number of countries, where the removal of an important competitor may lead to increased prices and less choice for customers.

Remedies proposed by SC Johnson did not remove the Commission's concerns as regards the effects of the proposed transaction.

SC...

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