Reckitt Benckiser receives conditional UK approval for K-Y acquisition

Reckitt Benckiser's proposed acquisition of the K-Y personal lubricant brand has been given conditionally approved by the UK Competition and Markets Authority (CMA).

The company agreed to purchase the brand from Johnson and Johnson in March 2014, but the CMA has held off on letting the deal go ahead due to concerns about a potential monopoly developing.

Currently, K-Y and Durex hold almost three-quarters of the market share in supermarkets and national pharmacies.

Phil Evans, chair of the Reckitt Benckiser/K-Y brand inquiry group, explained: "There is enough of an overlap in the market for personal lubricants for there to be a realistic prospect of consumers facing less competition and possibly higher prices if the two biggest brands come under single ownership."

As such, the CMA approval is contingent on Reckitt Benckiser agreeing to license the K-Y brand in the UK to a competitor for eight years, allowing time for it to develop a new brand to rival the Durex range.

The licence will also facilitate that new brand in gaining access to supermarkets and national pharmacy chains to protect competition.