S C Johnson/Sara Lee drop EU from deal
The US consumer products company, S C Johnson (Racine, Wisconsin), has dropped plans to acquire Sara Lee’s household insecticide business in the EU due to competition concerns. However, S C Johnson will continue with its planned purchase of the global business outside the EU. Sara Lee plans to divest its EU insecticides business and is exploring the possibility of transferring a limited amount of the business to S C Johnson. The companies agreed to a global deal in mid-2010, but their plans were thwarted by the European Commission’s concerns over effects on the EU market ( Agrow No 607, p 11). Sara Lee has received nearly all of the agreed €153.5 million ($220.3 million at the current rate) purchase price, but will transfer the net proceeds of its EU divestments to S C Johnson.