The Commerce Commission has granted Henkel New Zealand Limited clearance to acquire the Earthwise brand and business from Earthwise Group Limited, comprising the intellectual property in the Earthwise name, logo, bottle and formulas, the Earthwise goodwill and relevant Earthwise business records.
In reaching its decision, the Commission considered the potential impact of the proposed acquisition on competition in the national markets for the wholesale supply of laundry detergents, laundry pre-wash aids and toilet cleaners.
Commissioner Sue Begg said the Commission was satisfied that the acquisition is unlikely to lessen competition in any New Zealand market substantially.
“Our investigation found that Henkel and Earthwise are not close competitors and will continue to be constrained by several other prominent competitors in the national markets for the wholesale supply of laundry detergents, laundry pre-wash aids and toilet cleaners,” stated Begg.
Begg continued that the commission had found that Henkel and Earthwise focussed on different consumer preferences. Henkel has focused on products for price and quality-conscious consumers, whereas Earthwise is focused on products for ‘eco-conscious’ consumers.
“There are other competitors in each relevant market who could expand the volume of products they currently manufacture. We consider that these factors will mean the merged entity is unlikely to be able to increase prices or reduce quality in ways that substantially lessen competition in any relevant market.”
In due course, a public version of the written reasons for the decision will be available on the Commission’s case register.
