FTC Seeks to Block Edgewell, Harry’s Deal

The Federal Trade Commission is filing a suit to block Edgewell Personal Care Co.’s proposed $1.37 billion acquisition of Harry’s Inc., saying the deal would eliminate “one of the most important competitive forces in the shaving industry.” The FTC issued a statement on Monday saying it had authorized staff of the Bureau of Competition to file a suit that would enjoin the deal pending a trial. “The loss of Harry’s as an independent competitor would remove a critical disruptive rival that has driven down prices and spurred innovation in an industry that was previously dominated by two main suppliers, one of whom is the acquirer,” the FTC said in a statement. “The Harry’s and Flamingo brands represent a significant and growing competitive threat to the two firms that have dominated the wet shaving market for decades, Edgewell’s effort to short-circuit competition by buying up its newer rival promises serious harm to consumers,” said Daniel Francis, deputy director of the FTC’s bureau of competition, in a statement. In the complaint, the FTC alleges that for many years Edgewell and P&G ran their razor businesses “as a comfortable duopoly characterized by annual price increases that were not driven by changes in cost or demand.” Edgewell and Harry’s

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