Coty gets green light for P&G takeover in Russia
According to a report in TASS, a Russian news outlet, the country's antimonopoly authorities have come down in favour of the sale, which sees the US cosmetics producer take over 100% of shares in the P&G cosmetics subsidiary.
The global-reaching deal has already seen various regulatory bodies across the world give it their go-ahead, including the European Commission, and Russia’s confirmation serves to further secure the roll-out of the merger.
Contention
The Russian Federal Antimonopoly Service (FAS) considered fears that the acquisition would particularly affect P&G’s facility for hair care production in Capella, according to the TASS report.
“Approval of the transaction by the Russian regulator is needed because as a result of it Coty may indirectly dispose of 100% votes in Russia’s Capella factory owned by P&G, which has strategic importance for the national defense and security,” the news outlet explains.
The FAS has ultimately decided in favour of the merger, bringing Russia in line with the global response to the deal.
The merger
The closing of the merger between the two beauty giants is set to take places during October of this year, with a price tag of USD 12.5 billion.
Bart Becht, chairman and Interim CEO of Coty, commented recently of the merger: “We continue to make strong progress on the P&G transaction which we expect will make Coty a global leader and challenger in the Beauty Industry.”
The two companies have recently announced that Camillo Pane from Coty (currently executive VP of category development) will take the reins as CEO from the day following its completion.
