According to news sources, the Federal Trade Commission (you know them, you love them) said Monday that it plans to sue to block Edgewell’s $1.37 billion acquisition of shaving start-up Harry’s, citing competition concerns in the consumer shaving space.
The agency argues that the shaving industry needs upstarts like Harry’s to keep giant companies like Gillette owner Procter & Gamble and Schick maker Edgewell in check. Ironic since the “Harry’s” brand was built by taking on “big razor” and exposing their overpricing practices.
“For many years, Edgewell and Procter & Gamble operated their respective Schick and Gillette brands of men’s razors, and Intuition/Hydro Silk and Venus brands of women’s razors, as a comfortable duopoly characterized by annual price increases that were not driven by changes in costs or demand,” the FTC alleged.
“By bringing the disruptive Harry’s under Edgewell’s control,” it added, “the proposed acquisition would eliminate important and growing competition among suppliers of wet shave razors, and would inflict significant harm on consumers of razors across the United States.”
Edgewell President Rod Little and Harry’s co-CEOs Jeff Raider and Andy Katz-Mayfield said “We believe strongly that the combined company will deliver exceptional brands and products at a great value and are determined to bring those benefits to consumers.”
So which is it? A stronger combined company or harm to consumers by adding to one company’s dominance? We don’t always see things the same way and that’s when things get legal. Disputes are everywhere and when those things negatively affect YOU and YOUR business, call in the good guy business litigator Dean Sperling who will resolve YOUR matter with YOUR best interests in mind!
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