The Federal Trade Commission secured a federal court victory Aug. 18 blocking German multinational Henkel AG from acquiring the Liquid Nails brand, preserving competition in the construction adhesives market that directly affects American home builders and contractors.
The ruling demonstrates a continued muscular FTC antitrust posture in consumer-facing markets. Henkel already owns the competing Loctite brand, and the acquisition would have merged the two dominant construction adhesive brands under a single owner.
The FTC argued that combining Loctite and Liquid Nails would eliminate head-to-head competition and lead to higher prices for contractors and consumers, according to the commission’s statement. The court agreed, issuing an order blocking the transaction.
Construction adhesives are a staple product used in virtually every home construction and renovation project in the United States. The FTC said the two brands are each other’s closest competitors, and their combination would have given Henkel dominant market power.
Henkel may appeal the ruling. The company had argued that the market for construction adhesives is competitive and includes multiple smaller brands, according to court filings cited in the FTC release.
The FTC framed the win as protecting housing construction costs for American consumers and small contractors at a time when building material prices remain elevated, the commission said.
The decision continues a pattern of aggressive antitrust enforcement in consumer-facing markets under the current FTC leadership. The commission has pursued actions across industries from groceries to technology.
Home builder associations have generally welcomed strong competition in building materials markets, noting that material costs account for a significant portion of the final price of new homes and renovations.