The Federal Trade Commission is suing to block Procter & Gamble Co.’s acquisition of women’s shaving and grooming brand Billie after an 11-month review.
The complaint, to be filed in U.S. District Court in Washington, will allege that P&G, marketer of category-leading Gillette and Venus wet-shave brands as well as electric razor brand Braun, would “eliminate growing competition that benefits consumers” with the deal, the FTC said in a statement.
The FTC said Billie’s marketing proposition was selling a “quality, mid-tier women’s system razor targeted at Generation Z and Millennial women, including through marketing attacking the practice of pricing women’s razors higher than comparable men’s razors—otherwise known as the ‘pink tax.’”
The FTC voted 4-1 to block the deal, with Republican-appointed commissioner Christine S. Wilson voting no. A trial on the matter is scheduled to begin June 22.
In a statement, P&G said: “We are disappointed by the FTC’s decision. We are considering our options in light of the decision—and we do not have any additional comment at this time.”
'Comfortable duopoly'
The FTC’s move follows a similar suit in February to block Edgewell Personal Care’s acquisition of Harry’s, which the commission said would lead to a return of a “comfortable duopoly” between P&G and Edgewell, maker of Schick and many private-label brands. Unilever’s Dollar Shave Club is also in the market, and recently expanded from direct-to-consumer only to selling products at Walmart.
Some market watchers in February speculated the FTC was less likely to go after P&G’s Billie deal, because Billie is smaller than Harry’s, and the latter also owns one of four major razor manufacturing operations in the world, so its consolidation with Edgewell might eliminate a potential supplier for future competitors. P&G's 2018 acquisition of Walker & Co., another small d-to-c razor marketer, went unchallenged.
But in its statement today, Ian Conner, director of the FTC’s Bureau of Competition, said, “Billie saw an opportunity to challenge P&G’s position as the market leader by finding underserved, price and quality conscious customers, building an innovative brand. As its sales grew, Billie was likely to expand into brick-and-mortar stores, posing a serious threat to P&G. If P&G can snuff out Billie’s rapid competitive growth, consumers will likely face higher prices.”
