The Federal Trade Commission (FTC) has filed a lawsuit to prevent Henkel AG & Co. KGaA, the company behind the Loctite brand of construction adhesives, from acquiring its main competitor, Liquid Nails. The FTC argues that this proposed $725 million deal would reduce competition in the construction adhesive market and could result in higher prices and fewer choices for consumers.
Henkel, along with its U.S. subsidiaries, is seeking to purchase Liquid Nails from American Industrial Partners, a private equity firm. According to the FTC's complaint, Loctite and Liquid Nails are currently the two leading brands of construction adhesives available at major retailers such as The Home Depot, Lowe’s, and Ace Hardware.
The FTC contends that merging these two top competitors would eliminate direct competition between them. The agency claims this would likely lead to increased prices, reduced product quality, and less innovation in the market.
“Affordable, high-quality housing is essential to the American Dream, and the antitrust laws protect Americans from anticompetitive mergers that threaten to drive up the costs of the products we use to build and maintain our homes,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “Today’s enforcement action underscores the Trump-Vance FTC’s commitment to doing our part to make sure that Americans benefit from competition—like the competition between Loctite and Liquid Nails—that lowers the cost of homeownership and home improvement.”
The complaint notes that both companies have historically considered each other their primary rival in this sector. The FTC asserts that combining these brands would create a highly concentrated market—a situation deemed unlawful under current antitrust law and joint merger guidelines established by both the FTC and Department of Justice.
The Commission voted unanimously (2-0) to authorize staff to seek a permanent injunction against the acquisition. The case was filed in U.S. District Court for the Southern District of New York.
The FTC continues its work promoting competitive markets while protecting consumer interests through education and enforcement actions.
